Middle Class Tax Increase: Democratic Leaders Reach Compromise

[MannyGoldstein]

Source: http://prescriptions.blogs.nytimes.com/2010/01/14/democratic-leaders-reach-compromise-on-taxing-health-plans/?hp">The NY Times

The White House and Congressional leaders have reached a tentative deal on a proposed excise tax on high-cost, employer-sponsored insurance plans to be included in the final version of major health care legislation, according to officials familiar with the talks.

Officials did not immediately provide details of the tentative agreement, but it is expected to include an increase in the thresholds at which policies are hit by the tax.

The Senate bill currently would impose a 40 percent tax on the amount of policies for individuals above $8,500 and family plans above $23,000.

House Democrats and organized labor groups have been resisting the tax, which they say will hit many union-sponsored health plans and force an increase in medical expenses for many middle class families.