Labor Gets its Special Health Care Deal
At the end of this post I alluded to the special deal that unions–after much b***ing and moaning– have extracted from Team Obama Health Care Force. In short, the tax on so-called “cadillac plans” won’t be applied to collectively bargained health plans. Heritage’s James Sherk observes:
What a deal. Unions want the health care spending, but they do not want to pay for it. Obama gave them just that. It also makes for a great recruiting pitch: join a union, get a tax cut.
No doubt. But wait, there’s more!
That is just one of the many handouts unions get in the health care bill. It sets aside $5 billion to subsidize the costs of employer health benefits for early retirees. Few nonunion employers, of course, pay pension and health benefits for workers to retire at 55.
Or consider the small business exemption from the employer mandate for businesses with less than 50 employees. All businesses, that is, except construction companies. The costly employer mandate applies to any construction firm with more than four workers. Why would Congress kick small construction contractors when they are down? Because the construction unions asked Congress to. They did not want their small competitors to get out from under the bill’s costs and gain a competitive advantage. What if those costs put small contractors out of business? That is just too bad.
Nothing like looking out for the little guy, eh? But back to the exemption: Daniel Foster looks at the tea leaves:
Look for Obama and Congressional Democrats to the expand the union carve-out to cover a swath of the “middle-class” (the universal solvent of American politics), so they can camouflage this massive giveaway to a pet constituency.
One House Democrat is already saying a “consensus” could be built around such a scheme by further increasing the Medicare payroll tax and applying it to capital gains to make up for lost revenue.
This would amount to nothing less than a bill of attainder against on all constituencies that are not especially useful to the president and his party.
The shell game continues.