S.C. Democrat: ‘Cadillac Tax’ Violates Obama’s Promise
Posted on October 30, 2009
-By Warner Todd Huston
Representative James Clayburn, a Democrat from South Carolina, is expressing reservations about the “excise” tax on so-called Cadillac healthcare plans currently in the Senate’s version of Obamacare.
Clayburn, the House Democratic Whip, said that this excise tax violated Obama’s pledge not to raise taxes on the middle class.
“I do not want to see anything jeopardize the president’s promise not to raise taxes on the middle-class,” Clyburn told MSNBC. “And that could very well get us there.”
Clayburn joins Big Unions in denouncing the tax plan as an attack on the middle class.
The high-end healthcare excise tax plan in the Senate’s Baucus bill is supposed to be levied on insurance companies, but it is clear that these taxes will be passed on to consumers in the form of higher premiums. And then only if insurance companies even bother to offer such high-end plans to tax in the first place.
In place of the tax on Cadillac plans in the Senate bill, the House plan would penalize taxpaying families with a combined income of $1 million annually and individuals that earn more than $500,000 a year.
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2 Responses to “S.C. Democrat: ‘Cadillac Tax’ Violates Obama’s Promise”
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I am going to say that tax hits me at a mere income of $35,000. The tax on medical devices also hits people of any income from the poorest to the richest.
What bother me more is they are both tax on items I consider necessary. I would be more inclined to favor a tax on luxuries like sweets and soft-drinks.
You are on top of this!!! Good for you. This tax is so horrific that it would not only be a huge working class burden but most likely tax into oblivion PPO plans that provide and preserve a patient’s right to choose their own doctor and have access to adequate diagnostics and medical care.
These plans would become unaffordable to both companies, especially small businesses, and middle and low income workers alike. The default plans would be HMO plans that greatly restrict doctor choice and often deny needed diagnostics and good care.