Plan to tax 'Cadillac plans' splits Democrats

[Omaha Steve]

http://www.daily-times.com/farmington-lifestyles/ci_14051359

by Matt Canham

The Salt Lake Tribune
Posted: 12/22/2009 06:08:01 PM MST

Washington » Are Democrats willing to anger their most loyal political backers to achieve one of their main health reform goals?

The answer is a definite ... maybe.

Senate Democrats want to tax expensive insurance plans, saying it is a key way to lower the astronomical rise in medical costs, but doing so would hit many union workers and that has House Democrats more than a little squeamish. So instead the House wants to tax millionaires.

This backburner issue is likely to get much hotter if the Senate manages to pass a health reform bill soon, as expected. That would force House and Senate leaders to decide whether to support a cost-containing tax despite union opposition, or protect their power base at the expense of a desired reform.

Despite his ties to labor groups, Rep. Jim Matheson, D-Utah, backs the tax on so-called "Cadillac plans," especially after analysts with the non-partisan Congressional Budget Office said it is one of the most powerful ways to slow health care inflation.

"That makes the idea attractive to me," said Matheson, who opposed the House's health reform bill in part because it didn't do enough to control costs.

Unions have given Matheson more than $1.1 million in campaign contributions during his decade-long congressional career, which is more than he has received from any other sector.

FULL story at link.

[DJ13]

1. These twisted tax schemes that hurt the middle class the most is why

any attempt at HCR should have been based on a simple increase in income taxes.

But no, our good Dems in Congress cant bear the thought of the wealthy paying their fair share to benefit everyone.

[MichiganVote]

3. This ones a deal breaker for me. Time for fair taxes in place of no taxes for the wealthy.

[endless october]

2. in my opinion, any health care plan should be paid for by ending war. nt

[katandmoon]

4. "Tax millionaires." Gee...imagine that.

[bain_sidhe]

5. As I've said before, in what universe does it make sense

to try to solve the problem of too many people with poor or no insurance by punishing those with good insurance?

[doc03]

6. This sure has the rank and file Union workers pissed

John McCain proposed that in his campaign and the Unions backed Obama, so now the Democrats screw us. It seems the middle class get the shaft no matter who goes to Washington. My Congressman has sure got his ears chewed off from Democrats and Republican about this disaster of a health care plan.