The Cadillac tax.

[d-ray657]

Originally Posted by finnbow

As unpopular as it is, taxing all health benefits is the appropriate course of action. Health benefits are a form of compensation which some get and some don't. Therefore, those who don't get health care are subsidizing those that do through the tax code. Secondly, when you are getting something for free, you tend to overuse it. The problem is that McCain articulated this (correct) position in the campaign and Obama had to come out against it (along with his statement about no tax increases for those earning less than $250K).

Another perspective, however, is that those who have insurance subsidize the uninsured by paying higher costs for services, and hence higher insurance rates, to make up for ER visits and unpaid medical bills by the uninsured. Another thing is the the unions provide high value health care coverage at a lower costs through the operation of labor/management health care trusts that have just a fraction of the overhead of insurance companies because they are not run for a profit and they don't pay advertising expenses and commissions. The result of taxation would likely result in the diminution of benefits for members of organizations who have maintained benefits efficiently, and who have fought long and hard to obtain that level of protection.

Regards,

D-Ray