Members of Congress are being urged by 22 right to work states to oppose the 40% tax on non-union health care plans that will hit everyone’s states and districts particularly hard, and is grossly unfair to non-union workers.
We need to call our legislators and let them know, not only how unfair this is, but unconstitutional! This is absolutely deplorable to American workers, 92 percent of whom do not belong to unions. In essence, non-union employers and employees will be forced to subsidize the cost of exempting union workers from the tax, which will cost families in our states and districts thousands of dollars a year in additional charges.
According to the Associated Press: "Officials say the White House and labor leaders have reached a tentative agreement on how to tax high-value health insurance plans to help pay for a revamped medical system…The proposed tax has been a major sticking point because labor leaders fear union members, with some of the more lucrative benefit plans, would be hurt. President Barack Obama supports it as a way to hold down costs by nudging workers into less pricey coverage." Now we're supposed to believe that this special agreement will only last for eight years. All this means is that they have eight years to renegotiate the deal and get it again.
The tax, as passed in the Senate bill, would charge insurance companies a 40 percent excise tax on coverage above $8,500 for an individual and $23,000 for a family. Within three years, according to the Congressional Budget Office, the tax would apply to nearly 20 percent of all workers. Within six years, it would reach a fifth of all households earning as little as $50,000 annually.
Immediately, the tax will have three impacts:
1. Health benefits will be cut as many insurers and employers stop providing such plans that were once affordable.
2. Of those plans not cancelled, the costs will be passed on to the insured, raising premiums.
3. This new Health Care Penalty Tax will be used in Right-to-Work states as a backdoor method to force workers join unions, since union dues would be less than the tax.
This is a tax aimed at non-union workers and non-unionized businesses, in particular, small businesses that provide good health coverage to their employees. Meanwhile, union bosses of the AFL-CIO and the SEIU have been well-represented, as is indicated by this contemptible union exemption from the 40 percent excise tax.
You know what to do. Call your Senators and Representatives and keep fighting! We will never give up - NEVER.
Ginny Rapini
norcalteaparty1@aol.com
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