Debt

Cantor Dismisses Budget Fixing Proposal Because It Sounds Too European

Evan McMorris-Santoro | November 18, 2010, 1:34PM

Eric Cantor

There are many reasons why Republicans cannot talk about new taxes, even in the name of debt reduction. One is their tea party base, which will (rhetorically) tear limb from limb any politician who dares discuss increasing government revenues by raising the tax rate on anyone by even a smidge. Another, apparently, is because some revenue-neutral tax ideas to spur growth in the economy just sound too much like something a European might do.

Eric Cantor, incoming House Majority Leader, outlined this latter objection to a new in the Wall Street Journal yesterday. Asked about a proposal to fix the nation's federal deficit co-authored by a Democratic budget expert and noted non-European retired Sen. Pete Domenici (R), which would actually lower taxes on income and corporations, Cantor dismissed it because, basically, parts of it look to him like something a European might consider.

Read more »

Health Care

Trumka To TPMDC: 'I'm Happy' With Final Health Care Bill

Christina Bellantoni | March 18, 2010, 12:20PM

Richard Trumka, President of the AFL-CIO

AFL-CIO President Richard Trumka said in an interview this morning that union groups view the health care bill as "a good first step."

He did not directly address a question about reports of changes to the excise tax that unions were uncomfortable with early in the negotiations, but lauded the final product and said it can be improved upon.

He said the union talks with people writing the final bill have yielded positive changes, even if it's not everything they initially wanted. "I'm happy about what we've been able to do to change the funding," Trumka told TPMDC in a brief interview in the White House Rose Garden after President Obama signed the jobs bill.

Read more »

Health Care

Pelosi: 'There Are Absolutely No Sticking Points' On Excise Tax Deal

Rachel Slajda | January 15, 2010, 6:20PM

Speaker of the House Nancy Pelosi (D-CA)

House Speaker Nancy Pelosi -- who, as we've reported, has not been a fan of the so-called "Cadillac tax" -- today threw her support behind the deal reached by the White House and the unions on the tax.

"There are absolutely no sticking points," she said today, according to a transcript released by her office. "I would say two words, three words would be: finding common ground."

She admitted that the Cadillac tax, or excise tax, had originally been "overwhelmingly rejected" by the House.

Read more »

Health Care

Health Care Talks Went Into Wee Hours At White House

Christina Bellantoni | January 15, 2010, 9:05AM

President Barack Obama

After a big hurdle was cleared yesterday when the White House struck a deal with Congressional leaders and labor unions on the excise tax, the team went right back to negotiating late last night.

An administration official told us that several top leaders huddled in the Cabinet room from 9:15 p.m. until 1:25 a.m. That's after a more than 8-hour meeting Wednesday. (President Obama left just before 1 a.m., the official said.)

"The President and congressional leaders continued to work through the differences in the health bills. They made solid progress toward a final package, including common-sense adjustments that strengthen the legislation and make sure it works for middle-class families while bringing down costs and expanding coverage to millions of Americans," the official said.

Sen. Joe Lieberman (I-CT) was at the White House this week discussing health care, TPMDC has learned. Officials wouldn't disclose details of what was discussed, but to be sure Obama and Democratic leaders want to make sure they keep his vote in place for the final health care compromise.

Members attending last night's meeting after the jump.

Read more »

Health Care

WH Hails Health Care Tax Deal As Clearing Major Hurdle But Unions Aren't Sure It Will Work

Brian Beutler | January 14, 2010, 6:39PM

House Speaker Nancy Pelosi (D-CA), President Obama, and Sen. Harry Reid (D-NV)

It's not over, but an agreement on one of the stickiest of the sticking points on health care clears a path for a final health care bill to pass Congress and reach President Obama's desk.

After the deal with Congressional leadership and labor unions was reached on how to handle the excise tax that funds a large portion of the health care bill, administration and union officials tonight offered a broad outline for how it would work.

Read more »

Health Care

What'll It Take? Obama Woos Labor Over Controversial Health Care Tax

Brian Beutler | January 12, 2010, 2:11PM

President Barack Obama

Last night, Obama administration officials, and the President himself, met with the most influential leaders in organized labor to brainstorm ways to fix to a controversial provision in congressional health care legislation, roundly opposed by unions. And it appears the White House is trying to hit the right notes to keep its fragile alliance with unions alive.

At issue is whether there's any way to square the administration's support for a tax on high-end health care plans--a major source of funds--with the concern, articulated by myriad progressives and union officials, that the tax will impact many middle class Americans, and ultimately ensnare more and more of them.

"My understanding it was really discussions surrounding policy fixes that could, to at least try to delay the impact and look at maybe raising the threshold a little more," said one top labor official briefed on the meeting.

"Secretary Sebelius was there for part of the discussion," the official went on. "They are exploring, at least, some modifications that might take into account some collectively bargained plans, maybe trying to tie some exclusion for plans that are covered by a collective bargaining agreement."

Read more »

Health Care

Firefighters Rip Obama For Breaking Campaign Promise Over Cadillac Tax

Brian Beutler | January 11, 2010, 6:30PM

President Barack Obama

The International Association of Fire Fighters--an influential union that belongs to the AFL-CIO--has released the strongest condemnation yet of President Obama's support for taxing high-end health insurance plans as a means of financing a major health care overhaul--accusing him of breaking a campaign promise, and threatening to hold him accountable.

"If candidates make a promise to us, we hold them accountable. We held President Bush accountable when he made decisions that had a negative impact on our members' jobs and lives. We will do the same with President Obama," reads a statement from IAFF President Harold Schaitberger. "In 2008, then-candidate Obama promised three things: he said he would not raise taxes on folks making less than $250,000 a year; he vowed not to tax health insurance benefits; and he promised that under his health reform plan, people would be able to keep their existing coverage."

Read more »

Richard Trumka

Trumka Blames The Senate, Republicans And Some Democrats For Controversial Health Care Tax

Brian Beutler | January 11, 2010, 1:00PM

Richard Trumka, AFL-CIO President

Speaking at the National Press Club this afternoon, AFL-CIO President Richard Trumka blasted a controversial provision in the Senate health care bill, which would impose a stiff tax on high-end health care plans--a penalty that would impact many middle class workers and union members. From the prepared remarks: "[T]hanks to the Senate rules, the appalling irresponsibility of the Senate Republicans and the power of the wealthy among some Democrats, the Senate bill instead drives a wedge between the middle class and the poor."

The bill rightly seeks to ensure that most Americans have health insurance. But instead of taxing the rich, the Senate bill taxes the middle class by taxing workers' health plans--not just union members' health care; most of the 31 million insured employees who would be hit by the excise tax are not union members.

The tax on benefits in the Senate bill pits working Americans who need health care for their families against working Americans struggling to keep health care for their families. This is a policy designed to benefit elites--in this case, insurers, hospitals, pharmaceutical companies and irresponsible employers, at the expense of the broader public. It's the same tragic pattern that got us where we are today, and I can assure you the labor movement is fighting with everything we've got to win health care reform that is worthy of the support of working men and women.

Complicating things for labor is the fact that President Obama supports the excise tax. Neverthless,Trumka will no doubt be making this argument to Obama himself this afternoon at a White House gathering of labor officials.

You can read the complete transcript of Trumka's remarks below.

Read more »

House of Representatives

Democrats Hope To Seal The Deal On Health Care This Week

Brian Beutler | January 11, 2010, 9:32AM

Speaker of the House Nancy Pelosi (D-CA)

Democrats will have to make significant progress this week toward reaching an agreement on the shape of House-Senate health care legislation if they hope to hand President Obama a bill to sign before his State of the Union speech, tentatively scheduled for early February.

And that means they'll have to reach a number of compromises on everything from the implementation date of major reforms, to the structure of insurance markets, to, most crucially, how to pay for near-universal health care.

The question of how to generate new revenue has split House and Senate Democrats and has driven a wedge between Speaker Nancy Pelosi and the administration, which supports the Senate's plan: an excise tax on high-cost health care plans. For months, the White House's chief focus in the health care reform fight has been making sure the 60 members of the Senate Democratic caucus stay united behind the plan--and that means they're not giving Pelosi, who has greater margin for error and more control over her own caucus, much leeway to secure her priorities.

Read more »

House of Representatives

Latest Health Care Flashpoint Strains Relationships Among Democrats

Brian Beutler | January 8, 2010, 1:17PM

President Barack Obama and Rahm Emmanuel

Last year's health care debate was dominated by a bruising--and ultimately losing--fight over the public option. But simmering on the back burner for weeks while the public option ran its course has been a battle among Democrats over how to pay for health care reform. And now, with the public option swept into the dustbin, the fight over taxes has come to the fore, and is testing relationships all the way up the Democratic ladder to party leadership and the White House.

At issue is whether expanding insurance coverage to over 30 million Americans should be paid for by wealthy Americans (as the House would like), or, as the Senate calls for, by people who have expensive health care plans--many of whom are middle class. The vast majority of House Democrats--and the public at large--oppose the Senate proposal. But the idea has one powerful ally: President Obama.

"The polling just hasn't moved an inch," Rep. Joe Courtney (D-CT) told me. Recent data indicates that the public opposes the Senate's so-called "Cadillac tax" plan by a two-to-one margin. "Frankly, it's the same polling that was there when Obama went after McCain on this."

According to Courtney many in the House believe that, after sacrificing the public option, Democrats should draw a line in the sand over the excise tax--including one Democratic leader.

Read more »

Health Care

House Democrats Press Leadership On Health Care Bill

Brian Beutler | January 7, 2010, 4:40PM

Speaker of the House Nancy Pelosi (D-CA)

During a nearly two hour caucus conference call this afternoon, rank and file Democrats sought answers from their leadership about the state of ongoing House, White House health care negotiations. But they may not get concrete responses until the caucus meets again next week, or, failing that, until President Obama huddles with members at the Democrats' issue conference next week at Fort McNair.

"The questions were about national exchanges, about the public option, about the Cadillac plans, about consumer protection, about insurance reform," said Rep. George Miller (D-CA), chairman of the House Education and Labor Committee, and one of the chief authors of the House health care bill. "We told them what things the staff had started to discuss or haven't discussed yet."

According to a House leadership aide, members chief concerns on the call regarded a familiar array of issues. "Many members raised concerns about excise tax (in opposition to it)," the aide said. State exchanges came up -- many Members want a national exchange. Several spoke up also in favor of anti-trust exemption (repealing it) and keeping in place strong insurance reforms."

Read more »

Barack Obama

Top House Progressive Says Obama Is Violating Campaign Pledge

Brian Beutler | January 7, 2010, 3:16PM

Rep. Raul Grijalva (D-AZ)

House Progressive Caucus Co-Chair Raul Grijalva (D-AZ) has a number of issues with President Obama. But chief among them seems to be that, though they've stayed silent on a whole host of health care issues, they've thrown their weight behind a controversial tax in the Senate bill--one that Grijalva says violates Obama's solemn campaign pledge not to raise taxes on the middle class.

I asked Grijalva whether the White House's support for the Senate health care bill's excise tax on so-called "Cadillac" insurance policies is compatible with his promise on the campaign.

"No, it's not," Grijalva said.

Grijalva noted that, though the tax applies to very expensive insurance policies, many of the people who benefit from those policies are squarely in the middle class, adding that insurance companies will shift the burden to people who have less generous plans.

It sets up a situation, Grijalva said, where the middle class is subsidizing poor people. "You're building a class conflict that doesn't need to happen," he said.

Given Obama's campaign stance, it also creates political problems, including for rank-and-file Democrats.

"We've got to go back every two years," Grijalva told me. "We've got to explain this bill now and at election time."