President Obama met with congressional leaders to discuss exempting Unions from the 'Cadillac tax' during health care reform negotiations. In the early hours of Friday they appeared with a deal that would exempt Unions from the tax for five years.
President Obama had met with angered union leaders on Monday for several hours. The main point of their meeting was that Unions should be exempted from the tax.
Hours before the meeting, AFL-CIO president, Richard Trumka, related publicly that the Democrat party was in for a 2010 blood bath on election day if the administration would not force an exemption of the tax. He stated that Union members would stay home on election day if concessions were not made.
The health care bill contains a “Cadillac tax” that was touted by the administration as being the number one cost saver. The tax is applied to high cost insurance plans. The administration thought that these policies were only held by the affluent. Come to find out that union workers would be affected by the polices as well. When the union heads became aware of the proposal they began to campaign publicly against the plan.
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