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White House, Unions Reach Deal On Health Care Tax

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Richard Trumka, AFL-CIO President

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Sources tell the Associated Press that the White House has reached a tentative deal with union leaders on a proposed tax on so-called "Cadillac" health insurance plans.

Details were not released, but the White House is expected to share them with Congressional leaders later today. And a source tells TPMDC that the House is not yet a party to any deal.

An agreement would be a big step toward successfully merging the House and Senate bills.

However, a spokesman for the AFL-CIO, Eddie Vale, denied to TPMDC that an agreement had been reached.

"Discussions are ongoing. There is no deal," he said.

White House spokesman Robert Gibbs suggested a more formal announcement may be forthcoming. "I don't have any announcements to make at the moment," he said. "We may have more later in the day."

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January 14, 2010 1:12 PM   

White House cutting deals with Unions, the GOP will love that headline.

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January 14, 2010 1:17 PM    in reply to Walter Mitty

This is good news for Michael Steele!

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January 14, 2010 1:19 PM    in reply to Walter Mitty

Oh yeah.
Heh.

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January 14, 2010 1:59 PM    in reply to Walter Mitty

If the White House is moderating its policies because of what the GOP might think or do, then we are in deeper trouble than I thought. On the other hand, if the WH thinks that some policy might really cause anger in the GOP, that's a good first sign that the policy is correct.

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January 14, 2010 4:40 PM    in reply to Walter Mitty

It's time for health care to be removed from the "pay" equation. It's time for all sorts of non-income compensation to be taxed just like income. I'm pro-union, but I think they should be bargaining and getting actual pay and not virtual pay. This is just another distortion of our economy that we'd be better getting rid of.

And if "Cadillac" health plans getting taxed leads unions to negotiate more pay and less un-taxed compensation, so much the better, I think.

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January 14, 2010 1:18 PM   

Fox has already spewing it. Someone who watches it regularly informed me of this yesterday...

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January 14, 2010 1:20 PM   

The New York Times reports the deal was reached with Congressional leaders

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January 14, 2010 1:28 PM   

Of course what's wrong with unions making deals with the White House. That's a breath of fresh air after reading for months and months about the insurance and pharma industries making deals.

Long live unions. Let's hope more americans can unionize in our uphill battle to take over America from the greed based powers that be: the Silk Suit Mafia.

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January 14, 2010 1:54 PM    in reply to Chuck McCoy

But why do the unions need to pull a Ben Nelson? Why not just make the language define an income below which a "cadillac" is exempt?

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January 14, 2010 2:01 PM    in reply to Chuck McCoy

The left in this country has been so cowed and intimidated by the right that for some the news that labor unions, representing the working class millions in this country, were finally have some say in a piece of national legislation affecting both their members and their members non-union peers is something to be frightened of.

It is this sheepish attitude that results in a Democratic congress and administrations repeated appeasing concessions to a discredited conservative GOP minority.

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January 14, 2010 2:04 PM    in reply to tommyo

Couldn't agree with you more.

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January 14, 2010 2:05 PM    in reply to tommyo

Tommy, you nailed it.

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January 14, 2010 2:15 PM    in reply to tommyo

Fourthed.

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January 14, 2010 2:47 PM    in reply to tommyo

soooooooooooooo right!

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January 14, 2010 2:13 PM    in reply to Chuck McCoy

Right. Why weren't they hyperventilating about those deals? It's nuts. At least workers produce something. The same can't be said for insurance companies. They add no value to health care. They're an information management business. With community rating, the product they offer has effectively been commoditized, and the regulations they're fighting against represent salvation from complete obsolescence. This bill now mandates their existence. Saved by 'moderation'!

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January 14, 2010 1:54 PM   

Amen, Chuck.

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January 14, 2010 1:57 PM   

This is excellent news for Coakley. Just in time.

A new BMG / Research poll has her back up 49 - 41 %. I expect that to only expand now that this deal has been reached.

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January 14, 2010 2:02 PM    in reply to willia451

Great point!

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January 14, 2010 2:17 PM   

has anyone checked with lieberman???

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January 14, 2010 4:41 PM    in reply to hey norm

Who?

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January 14, 2010 2:22 PM   

Tribal based taxation. All aboard the banana republic train!!!

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January 14, 2010 2:42 PM   

So unions cutting a deal with the Obama White House is cause for hand-wringing, but oil, gas, timber, and mining companies cutting a deal with Cheney behind closed doors to divvy up our national parks, wetlands, wilderness areas, and oceans is a shining example of "Democracy in action?" Give me a fucking break.

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January 14, 2010 3:00 PM   

I think it's great that Obama is talking with union leaders. What bothers me is that union leaders 'could' have reached an agreement before getting input from their rank and file members.

FOX has been union bashing for a while. Just wait until the Employee Free Choice Act comes up!

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January 14, 2010 3:12 PM    in reply to ws84

Yup. Just wait. The jump in the unemployment rate will be truly impressive.

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January 14, 2010 3:41 PM   

it's not that hard

tax everyones health care benefits by adding it to their income over $250,000, problem solved. If you're a ubnion guys making that kind of money, too bad but i doubt there are many/any

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January 14, 2010 3:52 PM   

Off Topic but can you post this:

Helicopter Harold seems to be in a bit of trouble....

http://www.youtube.com/watch?v=TgBmQMSmCrY&feature=player_embedded

http://www.dailykos.com/story/2010/1/14/825055/-Devastating-video-of-Harold-Ford-+-Breaking-news-Update!

"This is what happens with Joe Scarborough is your political adviser;arrogance stumps common sense"

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