http://workinprogress.firedoglake.com/2010/02/16/as-obama-abandons-labor-labor-abandons-excise-tax-deal/By: Michael Whitney Tuesday February 16, 2010 11:04 am
With Obama set to unveil the pre-Scott Brown health care compromise for next week’s bipartisan lovefest, the already fragile deal is falling apart. Fresh off a stinging slap to the face in which Obama refused to appoint Craig Becker to the National Labor Relations Board, labor unions are apparently backing out of the deal on the excise tax on high-cost health care plans.
An agreement to tax high-cost, employer-sponsored health insurance plans, announced with fanfare by the White House and labor unions last month, is losing support from labor leaders, who say the proposal is too high a price to pay for the limited health care package they expect to emerge from Congress. <...>
But labor leaders have backed away from the proposal in the wake of the special Senate election in Massachusetts.
“I do not believe there will be an excise tax enacted,” said Larry Cohen, president of the Communications Workers of America. “It appears that the administration and Congress will be taking a much more modest approach to health care reform. The cost and value of such reform would not justify using an excise tax.”
The AFL-CIO and allied members of Congress are backing away from the excise tax because they say it’s not popular with voters, as evidenced by Scott Brown’s election. The labor federation’s polling, in addition to finding that union members voted for Brown over Coakley, found the excise tax to be an unpopular idea that sent more voters to Brown.
FULL story at link.