06.26
Indulge me while I quote myself from June 16th:
Again, whenever Obama makes some big policy push, the first thing you should ask yourself is “which union does this new policy or law benefit?”
Well, you can imagine my non-surprise in seeing this story, who’s headline is Union workers would be exempt from Dem health care tax. Here’s the money quote:
The best chance for compromise legislation on health care may be a plan under construction in the Senate Finance Committee that would pay for a public plan in part by taxing some worker health benefits.
Baucus is also weighing a tax based on the value of health care benefits that exceed a yet-to-be determined cap. A tax on benefits that exceed the cap by a mere $3,000 could amount to $750 in taxes annually for a worker who earns as little as $34,000, say experts.
But the union workers who helped Democrats win Congress and the White House and whose support will be key in getting a health bill signed into law would not pay the tax.
…union members serving under collective bargaining agreements would not be subjected to the tax, according to proposals under discussion.
So, here’s the way this would break down, using myself as an example. My family health insurance coverage currently costs me $502 per month. That’s half of the total cost. My employer picks up the other half. Under the new healthcare bill this $502 per month would be moved out of the pre-tax section of your paystub. This means my taxable income would go up by $6000 per year. It’s just like getting a $6000 per year raise, except you don’t actually get the money. You just get to pay the tax on it. That will be enough to push a lot of people into the next higher tax bracket, and it would affect people making as “as little as $34,000.” Let me put this another way. The guy making $34k per year will have to cough up another $70 per month in taxes. That might be just enough to cause him to not be able to pay his phone bill. Welcome to the lobby of Obamacare. More pain and misery waits for you inside.
But guess who doesn’t have to pay the tax? Unions! Of course, the end game here is very obvious:
Critics of the Baucus proposal to exempt unions from a health care benefits tax said the exclusion could be used to lure into unions employees who are anxious to avoid the benefits tax.
That guy who just got hit with the tax and can’t pay his phone bill now will be much more willing to vote yes on that secret union ballot. It’s a sort of card check, without the cards. Sickening. We all know that politicians are the most wretched bunch of pandering liars the world has ever known, but it’s still stunning to see how in the tank the Democrat party is to the union vote. I’ve never seen an interest group wield such singular sway over a party before. It’s truly remarkable.
Next up: seeing which unions benefit from the Waxman-Markey bill that’s being ram-rodded through congress as we are speaking.
