June 2010
Posted by: Foster Morss
The Hill reports today that the cozy relationship between Democrats and labor unions may be waning. AFL-CIO President Richard Trumka predicts that unions will be “unpredictable partners” when it comes to Democratic candidates in November. One of the reasons Trumka lists for the AFL-CIO’s unhappiness with Democrats is the fact that stimulus funds are being sent overseas. We have to admit, Trumka has a point. We have pointed out before that it is outrageous that stimulus funds are going overseas, especially when our unemployment rate is almost 10 percent and expected to rise in the future.
Trumka also expressed frustration about Obama’s support of the Cadillac tax stating:
The labor leader also noted the Obama administration’s support of a tax on high-cost insurance plans in the healthcare reform bill. He credited that policy with the Democrats’ loss of the late Sen. Edward Kennedy’s (D-Mass.) seat to Scott Brown (R) in January this year. “Two thirds of the people in Massachusetts who thought the excise tax was going to hit them voted for Brown,” Trumka said.
Trumka is right to be concerned about the Cadillac tax and its affect on elections. We have highlighted before that the Cadillac tax will break Obama’s campaign pledge not to tax the middle class. With Obama’s inability to curb high unemployment and his willingness to tax the middle class, we’re not surprised that the AFL-CIO is not as enthusiastic about supporters as they have been in the past.