Research Briefing

Will House Dems Support New Health Care Bill That Makes Senate Dems’ Tax On Health Benefits Even Larger?

“Rep. Stephen Lynch (D-Mass.) Is A Firm ‘No’ On Health Care Reform -- In Large Measure Because He Opposes The Idea Of Any Kind Of Excise Tax On Cadillac Plans, Even One That’s Delayed For Years And Years.” (Glenn Thrush, “Lynch Mobbed,” Politico, 3/18/10)

PELOSI’S NEW BILL DOUBLES DOWN ON SENATE DEMS’ TAX ON HEALTH INSURANCE, HITTING MORE MIDDLE CLASS AMERICANS “MORE QUICKLY”

Pelosi Decides To Include Senate Dems’ Health Benefits Tax, But Make It Larger, “Meaning The Tax Will Affect More Plans, More Quickly.” “And it indexes the tax on high-end insurance plans at the rate of inflation, instead of inflation plus one percent, meaning the tax will affect more plans, more quickly.” (Chris Frates, “The CBO Score,” Politico’s “Live Pulse” Blog, 3/18/10)

Obama’s Tax On High-Cost Insurance Plans Would Fall On Many Middle-Class American Workers. “Two-thirds of employers would raise deductibles, change insurers or scale back coverage to avoid the so-called Cadillac tax on high-cost benefits proposed in the Senate Democrats’ health care bill, a survey released today by consulting firm Mercer says.” (Julie Appleby, “Health Care ‘Cadillac Tax’ Could Hit Employers Hard,” NPR, 12/3/09)

AFL-CIO President Says Obama’s Tax On Insurance Plans “Taxes The Middle Class.” “‘[T]he 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,’ Trumka said hours before going to the White House. ‘This is a policy designed to benefit the elites.’” (“Unions Vs. Dems Over ‘Cadillac’ Health Tax,” The Associated Press, 1/12/10)

WILL THE 190 HOUSE DEMS WHO CALLED ORIGINAL SENATE DEMS’ TAX “DETRIMENTAL” NOW VOTE AGAINST PELOSI’S NEW BILL?

In October, 190 House Dems Signed A Letter In Opposition To Senate Dems’ Tax On Health Insurance Because It Would “Inevitably Extend To More And More Middle-Income American.” “Dear Speaker Pelosi: … we strongly encourage you to reject imposing an excise tax on so called high cost insurance plan. Such a tax would … inevitably extend to more and more middle-income Americans across the country …” (Rep. Joe Courtney, Letter To House Speaker Nancy Pelosi, 10/7/09)

• Worried That Tax Could Have “Detrimental Implications For Millions Of Middle-Class Americans.” “[A]n excise tax on high cost insurance plans … could have significant and detrimental implications for millions of middle-class Americans … we urge you to continue to reject proposals to enact an excise tax on high cost insurance plan that could potentially be passed on to middle class families.” (Rep. Joe Courtney, Letter To House Speaker Nancy Pelosi, 10/7/09)

Rep. Joe Courtney (D-CT), Author Of The Letter, Said Bill “Will Not Get Through The House If The Senate Does Not Bend On The ‘Cadillac Tax’” “Courtney, who has persuaded 190 House Democrats to sign a letter indicating their opposition to taxing health-care benefits, predicted that legislation … will not get through the House if the Senate does not bend on the ‘Cadillac tax.’” (Teddy Davis, “Democratic Congressman Warns Of Voter Backlash If Obama Sticks With Tax On Health Benefits,” ABC News, 1/6/10)