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Unions Could Be Exempted From Healthcare Benefits Tax

June 28, 2009

  One of the plans that is being considered to pay for healthcare reform is taxing the healthcare benefits of those who already pay for their own insurance– an idea proposed by John McCain and ridiculed by then candidate Obama during the campaign.

  Because of the huge issue that candidate Obama made over McCain’s plan to tax healthcare benefits I find this to be one of the biggest flip-flops in presidential history if the government goes through with it.

  Under this proposal people who provide healthcare for their families through their employers will be punished by a tax on their benefits to pay for those who do not provide for their own families.

  Needless to say unions are against the idea of taxing the healthcare benefits that they won in negotiations with employers and they voiced their opposition loudly. They have been heard and the current plan in the senate would exempt union members from paying the tax that the non-union employees will still have to pay.

It would shield the 12.4 percent of American workers who belong to unions from being taxed while exposing some other middle-income workers to the levy

  If you are a non-union employee and you have the same healthcare plan as a union member you will be forced to pay for another family’s insurance while the union member is exempt. This is outrageous. Talk about placating a special interest.

I can’t think of any other aspect of the individual income tax that treats benefits of different people differently because of who they work for,” said Chris Edwards, director of tax policy studies at the Cato Institute, a Washington research group that often criticizes Democrats’ economic proposals. Edwards said the carve-out “smacks of political favoritism”

  “Political favoritism” is exactly what this would be. This can not be allowed to happen. Nobody should have to pay for other people’s insurance but then to add salt to the wound certain employees would be exempted from paying the tax just because the company they work for is unionized.

  Why is being a non-union employee a black mark? Why are unionized employees who make the same as non-unionized employees not going to be subject to the same screw job? Union or non-union, people of the same classes are going to be treated differently under this plan. Union employees will receive preferential treatment. This has to be stopped.

  Originally we were told that only the heathcare benefits of rich people were going to be taxed, but now we find out that what be more important in the eyes of the government is whether or not you are a union employee. Suddenly middle class Americans may have to pay this tax also, but not all middle class Americans just those who do not belong to a union.

  The more that we hear about  healthcare reform the worse it gets.

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8 Comments leave one →
  1. Jonathan Wells's avatar
    Wellsy permalink
    June 28, 2009 10:14 pm

    This is absolutely shameful. Union workers are no better than the rest of us, save for the fact that they vote reliably Democratic. If this doesn’t turn the stomach of any squishy independents and moderates left, I don’t know what will.

    Wow, that really steams me. Obama is set on screwing this country as hard and as fast as legislatively possible, it seems.

    Like

    • Steve Dennis's avatar
      June 29, 2009 5:18 am

      It is infuriating isn’t it. The unions are nothing but another special interest group and it looks like Obama is dead set on placating them.
      Hopefully there will be enough independents that turn on him before 2010 and we can take back at least one of the houses. That is why he is pushing everything so fast, he feels there may be Obama burnout coming in 2010.

      Like

  2. Gram Andrews's avatar
    Gram Andrews permalink
    June 29, 2009 8:45 am

    Hmmm…I wonder if the “formerly represented”, retired union members get discounted health care. If it does, it’s going to include a ton of union members.

    Like

  3. Candice's avatar
    Candice permalink
    June 30, 2009 7:27 am

    My husband is in a union as well as my father and while I understand the frustration I am also a little grateful for some kind of “break”. I know it will cost the tax payers, but the union members are also tax payers. My husband paid over $12,000 alone in federal taxes last year, which is more than I made. For my health insurance he pays out almost $400 a month and we are expecting another increase this year. My husband and I do not want the health care bill passed regardless of any “incentives”.

    Not all union members are/vote Dem…my husband is an Independent and did not vote for Obama or McCain. As far as the anti-union sentiments…if the unions were not there my father would have been dead years ago because the government and his employer would not be as concerned with safety protocol on job sites. Unions may not be as strong as they once were, but consider the ramifications if they never existed at all…we would be back to virtual slave labor. People in power always find a way to exploit those beneath them.

    Keep in mind that federal/state/city employees are in unions so they are still only looking out for their best interest.

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    • John's avatar
      John permalink
      September 16, 2009 3:05 pm

      “Keep in mind that federal/state/city employees are in unions so they are still only looking out for their best interest.”

      No wonder the Federal government keeps creating more and more Federal workers…. Sad times for us all, what with the government spending us into oblivion and criminal organizations like ACORN being funded by our own government.

      Like

  4. Rick's avatar
    Rick permalink
    December 19, 2011 9:48 am

    I am currently an Officer in my Fire department, and I am covered by our firefighter’s union. I will be receiving an appointed promotion (deputy commissioner) which will make me an exempt employee. My union has stated that I will not be able to receive union benefits once I get the promotion. I would like to stay with my union, pay union dues and continue receiving my health benefits. Is there a way that I can stay with my union? I do know for a fact that our police department union does allow there appointed Deputy Commissioners to stay.

    Like

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