Labor union issues report slamming tax on 'Cadillac' plans

While unions have generally been supportive of the Obama Administration's health reform efforts, cracks are beginning to show in their alliance. This week, the Communications Workers of American released a report suggesting that a tax on high-cost "Cadillac" plans would actually impact many families making less than $250,000 per year.

According to political newspaper The Hill, CWA president Larry Cohen is arguing that the tax will cut coverage and boost healthcare costs for middle class families. This directly contradicts a recent blog post by Jason Furman, one of President Obama's senior aides, who argued that the tax would have little impact on average earners.

This marks a break in the strategy pursued by most unions, which have generally avoided criticizing the president's health reform initiatives. In the past, many have taken the position that the excise tax came from the Senate, and that the Senate is to blame for what they see as an odious proposal. Now, President Obama is in their sights.

Get more information on the political issues:
- read this Kaiser Health News piece

Related Articles:
Senators ponder varied tax increases, including non-profit hospital taxes
CBO: Middle-income consumers are costly under House reform bill
"Cadillac tax" on health plans brings opposing parties together

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