Labor Unions Battle High-End Policy Tax

Posted on October 8, 2009. Filed under: America | Tags: , , , , , |

By SEAN HIGGINS, INVESTOR’S BUSINESS DAILY

Prodded by Big Labor, House Democrats are rising up against Senate Democrats’ efforts to pay for President Obama’s health care overhaul in part via a tax on high-end insurance plans.

A total of 157 House Democrats — over 60% of the party’s 256-member caucus — sent a letter to Speaker Nancy Pelosi, D-Calif., Wednesday announcing their opposition to the tax.

Rep. Joe Courtney, D-Conn., who organized the petition, said the tax would hurt too many middle-class people in addition to the wealthier people it is intended to hit.

“This would have an impact far wider than just the Paris Hiltons of the world,” Courtney told reporters Wednesday.

Their move creates the latest snag in the already-troubled efforts to pass a health care bill this year. Democratic leaders are struggling to balance various factions in crafting legislation. Now Big Labor is making its demands as well.

The Senate Finance Committee, led by Sen. Max Baucus, D-Mont., last week included a 40% tax on insurance plans that would cost families more than $21,000 a year or individuals more than $8,000. The threshold would increase by 1% above inflation each year.

The thresholds would move to $26,000 and $9,850 respectively for people more than 55 years old and those in high-risk professions.

The tax would fall on insurers, but they would almost certainly pass that on to customers in the form of higher premiums.

Read the rest at Investors.com

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