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.

[backscatter712]

1. I've been hearing that unions will get a temporary exemption.

The justification is that unions negotiate long multi-year contracts that include health care plans, and that changing them in the face of the excise tax would be difficult or impossible, so they'll get a break from the excise tax for a few years, so they'll have some time to negotiate a new plan to avoid the tax, maybe negotiate raises for their members.

Definitely good news.

[ixion]

2. well, good news if you're in a union... for the time being, however

the rest of us are screwed.

[shadesofgray]

3. "Compromise"=we're still getting screwed.

[JHB]

4. What did the other side give up?

Otherwise it ain't a "compromise".

[JHB]

5. dupe