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Pelosi: Obama Committed To Unpopular Excise Tax

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Speaker of the House Nancy Pelosi (D-CA)

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House Speaker Nancy Pelosi just returned to the Capitol from a health care meeting at the White House. Walking toward her office, I asked her whether the Senate bill's "Cadillac tax" on high-end health care plans, which both the Senate and White House are pushing, would be a hard sell in the House.

"It's not a very popular initiative in the House or in the public," she said. "It's something the President is committed to, and we'll see how it works out."

In case that's not clear, Mr. President.

Pelosi has long-held reservations about the policy, and has even gone as far as ribbing the President for reneging on a commitment not to raise taxes on middle class Americans by supporting it. That said, she's still optimistic that identical reform package will pass the House and Senate.

"We're very confident that we'll be able to reconcile our legislation, which will meet our Triple-A test"--affordability, accountability, and accessibility.

"We've had, as you know, leadership meetings each day," she said. "Tomorrow we'll have a caucus. And in the meantime our staffs are working with the...Senate and the administration. They did that right after our meeting today. They'll continue to be meeting to reconcile the language."

For their part, the White House offered no details about the meeting. "The President, Speaker Pelosi, and the committee chairs held a constructive meeting in the Roosevelt Room. They discussed issues of interest to the Speaker and Chairmen, and they committed to continue working through the remaining differences between the bills. All of the participants agreed that they will continue moving forward to enact health insurance reform legislation as soon as possible."

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January 6, 2010 5:23 PM   

The "Cadillac tax" replaces the much-discussed "Options for Clunkers" plan, which would have allowed people to trade in their broken down and inefficient plans for more cost-effective models.

TheWeekinRebuke.com

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January 6, 2010 6:12 PM    in reply to Weitberg

That would be more cost-effective European models.

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January 6, 2010 5:26 PM   

Please hurry up and pass the thing. We already know the final bill will look very similar to the Senate bill because they don't have room to pass anything else. So hurry up and pass so you can start talking about the economy.

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January 7, 2010 12:21 AM    in reply to Darrius

Yeah, hurry up and finish so the economy will NEVER recover!

I've got Family Guy episodes to catch up on!

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January 6, 2010 5:34 PM   

I gotta say, while I disagree with Pelosi on the merits of the Excise Tax, she is doing an Excellent job fighting for her bill. She knows she's not going to be successful, but this will help rally her side to go along with anything that comes out of the ultimate bill.

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January 6, 2010 5:55 PM    in reply to calchala

I think Stroszek explained Pelosi's strategy well in the other Pelosi/excise tax thread. The excise tax, the public option, and the anti-trust exemption are just bargaining chips to get better affordability, better Exchange, and better risk selection provisions. She's not going to get any of the revenue from the excise tax scaled back, but she can use the excise tax, the public option, and the anti-trust exemption to get the House's provisions on the other items I mentioned.

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January 6, 2010 6:06 PM    in reply to calchala

I agree, I don't oppose the excise tax, I think the fear is people hate the word tax, but it's good to see her fighting.

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January 6, 2010 8:23 PM    in reply to dtOZONE

You should oppose the excise tax. Its going to lead to less coverage for a large number of middle class people who gave up wage hikes in favor of good health benefits.

The House plan taxes wealthy individuals to raise the funds. You're saying you'd rather tax the middle class.

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January 6, 2010 5:36 PM   

I'm sure there will be compromises made that we just have to swallow, but this one is enough to gag me. As a union member for a company which has for the past two years had waves of lay-offs, cumpulsory wage freezes and salary freezes, my "Cadillac" health plan is just about the last decent benefit left. And over the years other unions have bargained away a lot of other reasonable benefits, to hang on to good medical health insurance. The AFL-CIO will be up in arms about this, as well they should be. There must be another way.

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January 6, 2010 6:05 PM    in reply to woolf

The AFL-CIO will be up in arms about this, as well they should be.

Sure they will.

No doubt there will be sternly worded letters sent and angry sounding press releases released.

And then the recipients can all wipe their asses with the letters and press releases.

Because that's all they're good for...

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January 6, 2010 6:17 PM    in reply to McMia

Screw Labor. Who needs them! Where they gonna go? To the GOP? Screw'em!

or atleast, that seems the democratic strategy these days.

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January 6, 2010 6:51 PM    in reply to Indie Pro

That's their strategy for the entire base. These guys are doing everything they possibly can to show the world that the only people more incompetent than Republicans are Democrats.

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January 6, 2010 6:59 PM    in reply to EastWest

Not incompetent, just as beholden to Wall Street and the financial special interests who have already almost destroyed the world economy and for whom Obama seems likely to sacrifice his second term to preserve ensconced in a cushion of plush bonuses

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January 6, 2010 7:31 PM    in reply to Indie Pro

Yeah, "screw labor." That is the democratic party's problem. I'll tell you this: Labor is very seriously considering taking a walk. Watch out how that works long term. At least the democratic party will officially be the party of wall street.

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January 6, 2010 7:28 PM    in reply to McMia

Gotta love these armchair tough guys. Well, when the Democratic party is done wiping their asses with labor, they'll have a little soul searching. The fact remains that labor is not only the biggest donor to Democrats but has the largest and effective GOTV machine. Remember 1994? Beg my pardon, but the wannabe policy crowd is wrong on the policy merits: the tax will (1)either be avoided and amount to little in revenue generation (2) or end up hitting a significant number of very modest plans, or (3) result in both a tax and the dilution of plans by dumping expenses to out-of-pocket costs.

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January 6, 2010 5:38 PM   

how shameful of the president

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January 6, 2010 5:38 PM   

Why the phucking hell are all these damned Dems like Obama afraid to tax the rich? The skew in income redistribution to the wealthiest Americans has been going on non-stop for decades and has resulted in the crumbling of working class and middle class lives. WTF? Why continue to pile taxes and misery on the people least able to pay, and at the same time keep kissing the ass of millionaires and billionaires like they shit gold and roses? The super wealthy have made off with all the economic gains of the last decade and Obama just sits there like it's business as usual. Fuck Obama! He is going to get his ass handed to him in 2010 by the crazy asses because all the decent average folks are just demoralized and disgusted.

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January 6, 2010 5:41 PM   

I wasn't aware Obama became a Tyrant and Congress merely window dressing. Who gives a shit if he wants crap for a bill. It's his legacy of appeasement to Phama and Insurance companies he should care about. Well, granted they pay better.

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January 6, 2010 5:54 PM   

It was my understanding that the Senate bill also raises the Medicare tax on high income earners so it is not as regressive as you suggest in your framing, Brian.

In addition, I wish someone would get into the history of financing entitlement programs, which are not soeasily cut, vs. welfare programs, which are easily cut. I think it would lead to a greater understanding of the thorny financing issues.

To wit, Social Security and Medicare are "self-financed" with demonstrably regressive taxes and they have survived. Those programs financed out of general revenues always go on the chopping block when the Republicans regain control in the quest for lower and lower marginal rates.

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January 6, 2010 5:54 PM   

"As a union member for a company which has for the past two years had waves of lay-offs, cumpulsory wage freezes and salary freezes, my "Cadillac" health plan is just about the last decent benefit left."

Amen, but you do yourself a disservice by buying into that phrasing. It's fair to ask if the only benefit union members are going to get from health-care reform is a higher tax bill -- unless the silver lining for them is that their pre-existing conditions won't be held against them when they're forced to buy new insurance after they eventually lose their jobs. This is not Obama's best moment.

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January 6, 2010 5:55 PM   

I do a lot of ranting, but I do it out of life experience.

My sister had one of those Cadillac health plans. The kind so few of us have today. It didn't save her life, but it made it possible for her to die in dignity and it made it possible for my parents to have dignity in their old age because they would have spent every dime they had rather than let her suffer in any way that money could have made a difference.

The Democratic Party now believes that this is too good for the middle class. One wonders if they believe a middle class has any value at all.

There are Cadillace health plans and there are Clunker health plans. We know which kind we're going to get.

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January 6, 2010 6:12 PM    in reply to bluebell

You are right on the money. Our elected officials will insure that their (and our) masters in the plutocracy will profit handsomely with any changes in health care "reform".

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January 6, 2010 5:57 PM   

But YOU MAKE THE LAW, Pelousy. And we all know that the definition of "Cadillac" will be what most middle class Americans already have. What? Didn't you know you're driving a Cadillac Insurance?

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January 6, 2010 7:10 PM    in reply to CranialRectalLoopback

Not true. Government employees are a part of a large risk pool. As an example, the exact same Blue Cross Blue Shield policy that costs government employees less than $400 per month costs $1,300 per month for an employee in a very small business. We're age rated. The senate picked an arbitrary figure for the excise tax threshold and that figure has nothing to do with real life. Same plan - their clunker is my cadillac.

Unfortunately, their cap means that a lot of older workers and individuals will end up with policies that are high deductible and pay only 50% of the bills - or we'll have nothing. There may eventually be standards policies will have to meet but before that, we'll have mandates and the excise tax.


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January 6, 2010 6:07 PM   

While the President's loyalists are insisting that this is a breakthrough, revolutionary, unprecedented change in health care in this country, with 30 million now able to get insurance, it looks more like a revolutionary windfall for the insurance companies to me, with 30 million more customers to squeeze dry.

The President wimped out on the public option, and some of us won't forget that, any more than we will forget FISA.

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January 6, 2010 6:12 PM    in reply to Prysmith

The President wimped out on the public option, and some of us won't forget that, any more than we will forget FISA.

so he has nothing to worry about then since FISA hurt him not one aota.

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January 6, 2010 6:15 PM    in reply to dtOZONE

Not yet. But he has another election, and a lot of people who contributed to him, and campaigned for him who will just sit this one out. Voting for a man who talks like a Progressive and then turns into Bush Three is the sort of bait and switch I won't fall victim to again.

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January 6, 2010 6:56 PM    in reply to Prysmith

I never heard a progressive campaigning. I heard a pragmatist. Look any of you who expected miracles (especially in the first year in office) with the economy in the toilet, two wars, banks failing - what did you expect.

I am sick of whiners. Where would you all be right now if McCain and Palin were elected? You'd really be fucked and forget about health care reform or any other reform.

Go vote for the republicans next time. See how that will work out for you. He campaigned on change and change is happening but for some not fast enough.

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January 6, 2010 8:40 PM    in reply to lousgirl84

Anyone who doesn't fawn over Obama is a whiner.

Some of us support policies, not personalities. Be curious to know what Obama would have to do to lose your support.

Telecom Immunity. Check.
Ignore Bush Administration War Crimes. Check.
Hundreds of Billions to fat cat bankers. Check.
Expand Unconstitutional Surveillance. Check.
Ratify Abuse of Government Secrets Privilege. Check.
Gut Stimulus package. Check.
Sell out HCR to PhRMA & Insurance Industry. Check.
Undermine Financial Reform. In Progress.

What you fail to understand ObamaGirl, is that as long as we suspend all credulity and uncritically accept whatever crap they want to give us, we'll continue to get crap. We'll forever be face with a choice between horrible and "only" bad.

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January 7, 2010 12:24 AM    in reply to Prysmith

I'm just sayin'...The Obamacrats can wish all they want, but that won't change the perception of the independents and first-timers who made his fairytale possible.

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January 6, 2010 6:16 PM    in reply to dtOZONE

I agree. The President should fly his anti-labor, pro-corporate, conservative flag high!

forget those goofy letters on DKOS after the FISA vote. That'll never work again.

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January 6, 2010 6:43 PM    in reply to Indie Pro

Fool me once, . . . fool me, . . . uuhhhhh, won't get fooled agin.

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January 6, 2010 6:22 PM   

My wife's a public school teacher and her health insurance plan, negotiated by her union, is close to the so-called "Cadillac" level. But believe me, it doesn't pay for Shiatsu massage therapy or spa treatments. In fact, it doesn't even cover needed physical therapy. It's simply a decent health care plan that costs a lot because we're in a high-cost state and the group's population skews older. Without indexing, this will soon hit the "Cadillac" threshold and we'll be faced with a huge increase in out-of-pocket costs.

I'm glad that Pelosi is pushing back hard on this; it is a horrible policy that within a decade will impact almost half of the population. Hopefully there will be at least some compromise between the two funding mechanisms (higher threshold for "Cadillac" plans, lower taxes for the rich).

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January 6, 2010 7:20 PM    in reply to DB55

Thanks so much for this post. I've been so focused on the unfairness of the age rating that I forgot about the differences in cost from state to state. Have you ever wondered what world our congress lives in???

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January 7, 2010 12:27 AM    in reply to DB55

What? No full body scans or $20 co-pays for transplants like our Senators get? TAX IT!

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January 6, 2010 7:27 PM   

You never heard a progressive? Well, excuse us for voting! Won't make that mistake again. Glad we got that cleared up.

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January 6, 2010 7:34 PM   

Pelosi commited to wearing a ravaged & craggy face which horrifies anyone not a fan of slasher movies.

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January 6, 2010 9:12 PM   

I have a lot more faith in Nancy Pelosi than I do in the president these days. Once again progressives get their arms twisted and are told to suck it up, all so that the super-rich can avoid higher taxes and the middle-class can get stuck with them instead. Haven't we just gone through 30 years or so of that? Worked out really well, hasn't it?

I don't blame labor for being pissed either. Heard any talk about card-check lately? If the president's this timid and ineffectual with a 60-seat majority, imagine what will happen after November if we're down to a 53 or 54-seat majority. I hope we hold onto 60, but boy, it sure feels weird to be fighting a defensive strategy on progressive values with a Democratic president and big majorities in Congress. Not exactly what I donated and worked for last year.

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January 6, 2010 9:18 PM   

I never heard a progressive campaigning. I heard a pragmatist.

What a load of crap. The man promised change. He promised to stand up for the middle class. He promised to fight the corporations and special interests. He gave soaring speeches promising a new direction and a new deal. Well, from aqll of the data in so far, he lied his ass off to get elected and exploited people's hope for something and someone better.

He's worse than Bush IMO because he has killed hope and has killed any hope of real change in my life time while continuing with nearly all of Bush's policies on anything of consequence. He has affirmed that this is and always will be a country run by the rich for the rich.

Yes we can! What a load of crap!

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January 6, 2010 9:41 PM    in reply to syncro

You are no democrat - I suspect a troll.

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January 6, 2010 10:26 PM    in reply to lousgirl84

Ooooh, lousgirl, ouch. Way to come back with the substance, the logic, and the facts, just like you always do.

Comedy gold. Someone doesn't agree with you -- pull the "troll" card. Just like the redstaters.

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January 6, 2010 11:04 PM   

You are no democrat - I suspect a troll.

My dear, I suspect you are too young to even know what a real democrat looks like, or used to. These are corprocrats, not democrats. And Obama has proven himself to be a corprocrat through and through, from FISA to card check to the bailout, the policies on everything financial, to don't ask, don't tell, to the health care bill he let the most corporate of corporatecrats in the senate craft while he sat on his hands and did nothing even approaching the "fight" he promised.

Did he ever fight for anything this year, except billions for the bankers and his lords at Goldman Sachs (Obama's no. 1 corporate-bundled campaign contributor at $994,795.)? I never saw it.

I guess it's particularly disappointing because his rhetoric and promises made during the campaign are so starkly at odds with what he is doing in office that I feel cheated, lied to and duped. Just wait till you hear him talk up this piece of crap health care bill like it is as big a deal as social security. He's going to pretend he is delivering what he promised during the campaign while he never really fought for anything in it. he just sat in the WH and let the senate corprocrats do it all, abdicating his leadership to Max Baucas, Joe Lieberman and president snowe.

Naturally, those of us who have lived through times when democrats really fought for working people are going to be much more disappointed than younger folks who have only experienced democratic presidential leadership through Bill Clinton (i.e., anyone under about 48).

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January 7, 2010 1:02 AM    in reply to syncro

You make a great point. Those who were born in the 60's or later have no concept of what a REAL Dem looks like. They only have Bill Clinton as their role model.

That is scary! We have got to do a better job of educating our youth. Fortunately, I like to read history books, but my greatest source of information was my grandparents who lived through the Great Depression and had no Social Security, Medicare or minimum wages to rely on.

These kids take these things for granted today, because of the battles my grandparents and others fought in the streets.

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January 7, 2010 1:12 AM   


Join the conversation about the Obama Health care plan at http://www.obamahealthcareplan.org

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January 7, 2010 7:24 AM   

The only question is how many people will hold their noses and vote the same corrupt politicians back into office. the majority of both parties belong in prison not in power.

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