Skip to content

Will Unions Pay for their “Cadillacs”? Some Say Yes, Some No

1 min readBy: William Ahern

I wrote a commentary earlier today about one of the taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. es in the Senate’s health care reform bill, the so-called Cadillac taxThe Cadillac Tax is a 40 percent tax on employer-sponsored health care coverage that exceeds a certain value. The aim: to curb health-care cost growth, reduce favorable tax treatment of employer-provided insurance, and help fund the Affordable Care Act (ACA). It was repealed in late 2019 before taking effect. . My main point was that even though it’s the least economically damaging tax in any of the bills, House Democrats and their unionized supporters hate it. Now, due to the election of a 41st Republican in the Senate, House Democrats might have to swallow it and be satisfied with possibly empty promises that they’ll get tax relief later in the year.

Here’s a blog that quotes AFL-CIO legislative director Bill Samuel as saying the original Senate health care bill is unacceptable (which is what Chris Matthews predicted), but here’s a contrary quotation from the SEIU’s Andy Stern.