Unions, the Cadillac Tax, and the CBO

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Why isn't labor screaming about the excise tax?

1:57 PM, Mar 18, 2010 • By MATTHEW CONTINETTI

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In order to obtain a friendly CBO score, the Democrats lowered the threshold at which health insurance plans will be subject to the excise tax. That threshold is now pegged at inflation, which means more and more plans will be subject to bracket creep over time.

Union boss Richard Trumka

Obtained via Creative Commons

Yet labor coalition Change to Win says it supports the revised Senate bill. And AFL-CIO boss Richard Trumka is in talks with his executive committee over the changes to the tax. The AFL-CIO is expected to support the bill, as well, despite the changes. Why?

Yesterday Trumka was summoned to an unscheduled meeting at the White House. One wonders what he was told. Could it have been that the regressive changes to the taxes and subsidies shouldn't sway his support for the bill, since the Democrats can always cancel them once they kick down the door?