Will Health Insurance Plans be Taxed?
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Just this week the much-debated public option was likely abandoned in favor of a low-priced, national health insurance plan, alongside a probable revision of Medicare that will allow coverage of millions of Americans.
And now, the plan to tax so-called "cadillac" health insurance plans in order to boost revenue is under fire as well.
The argument is coming from a surprising direction: Unions have long been Obama supporters in the insurance fight, but their concern is that taxing what is known as "high value insurance plans" won't just hit CEO's but also middle class Americans.
According to the Associated Press' article on health care legislation, many of those Americans chose to forgo salary increases in order to negotiate for better health benefits. Taxing them would unfairly burden these people, and the results could be financially devastating.
The other option, which the Union supports, is a tax increase on those who make more than $500,000 a year and couples making more than $1 million. Such a tax hike would go far in alleviating the debts that will be accrued in the face of the nearly $1 trillion dollar health care bill currently debated in the Senate.