Deal Made on US Healthcare Tax
Political leaders have stopped opposing the “Cadillac tax” and agreed to have limits on the tax. This deal removes one of the final obstacles US President Obama faced in completing the overhaul of the nation’s healthcare system.
The formula agreed to, which took a round of intense negotiations, is in place to tax high-cost insurance plans. This compromise will raise the value of family plans that are subject to the tax by $1,000 to $24,000. It will also exempt the cost of vision and dental plans, as well as postpone the application of the tax to healthcare plans that unions have negotiated under contracts until 2018.
Although this tax plan is supported by many powerful leaders, workers will have to be convinced that it doesn’t betray the promise Obama made to oppose any new taxes on health benefits. Obama believes that the tax is crucial to controlling the cost of healthcare.
Speaking to the House of Democratic Caucus, Obama acknowledged the challenges lawmakers face in defending the healthcare overhaul he started. However, he reassured them that the political climate will shift as soon as voters learn more about the impact the bill will have.
Republicans are obviously opposed to the delay that unionized workers will get from the tax, as it is not fair to workers who don’t belong to a union and will be forced to pay the tax 5 years before its implemented on everyone, starting in 2013. House Republican Leader spokeswoman Antonia Ferrier said that this compromise is one of many sweetheart deals and back room payoffs in the healthcare bill, which is overwhelmingly unsupported by Americans. She added that many people will be angry.