Health Care Penalty Tax Emerges

Right to Work Tax on The Horizon

Written by Adam Bitely
Thursday, 14 January 2010 09:49

It looks like the Unions, Obama and Pelosi have struck a deal. And their deal will punish those that are not part of the Union Class. Right to Work states will soon be feeling the heavy hand of government for not being aligned with the Labor Unions if a new provision in the Health Care bill is allowed to pass.

Labor Union leadership was upset to learn that there would be an excise tax enforced on so-called "Cadillac" Health Care Plans. After they met extensively with Obama and Pelosi, a deal was struck to exempt Collectively Bargained Health Care Plans from any sort of "Cadillac" Health Care tax. Unions have cleared themselves from any extra burden and have shifted that onto non-union laborers.

There are 22 Right to Work states in the USA. 92% of the American labor force is not in a Labor Union. So, how much of an effect will this have on non-union, merit based laborers? According to Morning Bell, "Specifically, Big Labor reportedly has struck a deal with health care negotiators to exempt union members from the 40% excise tax on high-priced health insurance premiums. By some estimates, the tax would hit one in four union members. Now Big Labor will get all of the big government health care spending they always wanted, but they will not have to pay for it."

That's right. Union members will not have to pay a 40% excise tax on their health care plans while merit-based laborers will be forced to pony up the 40% tax.

While Democrats have been framing this debate as a way to target the rich in America who are not paying their fair share, this seems to be anything but the case. They have drawn new class lines. You are either in the Union Class or you are in the Common Class and the Common Class pays heavily for their Health Care.

Right to Work states will be forced to foot the bill for the exempt Labor Unions. And Labor Unions will use this new Government granted exemption as a way to force more members into their fold.

More coming on this matter soon.