is open to adjusting the tax so it would affect fewer people. There has been discussion of raising the threshold for the tax from $23,000 to $25,000 or higher. It has already been raised for first responders and workers in certain high-risk fields, and the levy could be softened for more unionized professions.Union leaders, including UFCW President Joe Hansen, met with President Obama yesterday to discuss the tax and its negative impacts on middle-class families and union members. And while it's still too early to say if enough progress has been or will be made, the negotiations are certainly a step in the right direction.
The foregone revenue from tweaking the insurance tax would be made up from the investment accounts of upper-income earners. (Pensions and retirement accounts would not be taxed.) The Senate bill already calls for raising the Medicare payroll tax on wages to 2.35 percent for couples making over $250,000 and individuals making more than $200,000.
Jan 12, 2010
Potential good news for union members: it looks like President Obama and members of Congress may be willing to negotiate so that fewer people would be affected by the so-called "Cadillac Plan" tax, including fewer union members. AP reports that although many ideas are under discussion, Obama: