White House nears deal on health care
It was announced Thursday night that the negotiations between the White House and labor leaders has resulted in a deal on health care. Labor leaders have argued that the tax would fall disproportionally on union members who have bargained for benefits over wages. The deal exempts union members from the so called 'Cadillac Tax' until 2018, as well as raising the value of the policies that would be taxed to $24,000 for families and $8,9000 for individuals. Women, older workers, workers in high cost states and workers in high risk professions will all receive breaks. Vision and dental plans will be exempt starting in 2015. The tax will be the main source of funding for the health care plan, and the new changes are estimated to cut revenue from the tax by $60 billion over ten years. To make up for the loss, Democrats say that a tax on wealthier families is likely.
See "White House nears deal on health care", Lori Montgomery and Michael D. Shear, The Washington Post, January 14, 2010