Tuesday, January 12, 2010

Unforced Error on Health Plan Tax

Big Labor is upset the Dems want to levy a tax on high-value health insurance plans. I'm just scratching my head over whether the Dems realize what they're doing.

On the one hand they say they want to tax "Cadillac" health plans (whatever that means) to discourage them, resulting (somehow) in lower health care costs for everyone.

On the other hand they want to pay for health care reform by taxing these health plans.

So which is it? Are we trying to get rid of them or use them for revenue? More importantly, how can we use them for revenue if we're trying to get rid of them? I'd say it's all an accounting gimmick, but I don't think they're bright enough to recognize the contradiction.

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