Conservative Political Commentary

Anti-socialist, anti-communist, anti-globalist, pro-Constitution,
and usually with an attempt at historical and economic context

Monday, January 18, 2010

Special Tax Treatment for Special Taxpayers



Speaking of the “Health Care Reform” legislation:
“‘I guess this bill is only good if it doesn't apply to you,’ GOPAC Chairman Frank Donatelli said…. ‘If this bill is so good, why does everyone need an exemption in order to vote for it? ... We see the drug companies get a special deal. We see what happened in Louisiana and most notoriously Nebraska in the Senate where they got special deals. And now the unions get a special deal….’” [1]

Arm-twisting, bribery, intimidation, and special treatment are required for the Democrats to make progress on getting “health care reform” passed. It appears that the top Democratic leadership doesn’t much care about the specifics of the final bill as long as they can get the votes and satisfy powerful client special interests. The American people should get this kind of consideration, eh? Most are solidly against this “reform.” [2]

To go along with so many other unconstitutional and destructive Obama policies and proposals, they’ve added the little detail of exempting union members’ “Cadillac” health plans from the proposed heavy tax. People whose insurance is covered by a collective-bargaining agreement get an exemption. Not other citizens. Isn’t there something in the Constitution about the “equal protection of the law”? [3] There’s also an item about “titles of nobility,” and while this isn’t a title as such, Obama doesn’t mind treating certain “classes” of people like they’re privileged characters compared to the rest of us. [4]

Specifically, “The deal reached by unions and the White House would tax family insurance plans worth $24,000, up from the $23,000. The average employer-sponsored family plan cost $13,375 in 2009, according to the Kaiser Family Foundation. The deal also would delay the tax until 2018 for policies covering workers in collective bargaining agreements,” according to an AP article. [5]

Is this a sweetheart deal or what? It’s worth $60 BILLION [6] according to estimates, leaving that much to be made up in other ways (i.e., taxes). This will kill and bury Obama’s “promise” that families earning less than $250,000 a year would get no increase – “not one dime” – in taxes. Of course, that was pretty well gone anyway. What someone said of Clinton may go better for Obama: “He kept all the promises he intended to keep.” “Deficit-neutral”? Are you kidding?

And in typical Obama and Congressional Democrat fashion, this agreement was reached behind closed doors. Obama’s talk of “transparency” in government now has to be regarded as a joke. But not funny.

Meanwhile, as the Obama Administration and Congressional Democratic leadership are busy with this socialist program, complete with more unsustainable entitlements and plenty of new taxes, they claim to be concerned about unemployment – which they want to deal with by more and more spending. When these new taxes come on stream, they will deal a serious blow to employment and likely make for a double-dip recession, with little relief in sight. The deficit will increase as a result of new taxes, not decrease. The mounting deficits could put the dollar itself in serious trouble.

I hate to sound pessimistic. With a common-sense approach to the economy, big improvements could soon be made. But nothing the administration is doing seems to point in that direction. Union bosses needn’t worry, though. The administration will try to protect them, as long as it means union support for their unpopular and misguided policies.

[1] Fox News.com, Major Garret and Trish Turner contributing, “Democrats Hammered for ‘Back-Room’ Deal with Unions on Health Care,” 01/15/2010, at http://www.foxnews.com/politics/2010/01/15/democrats-hammered-room-deal-unions-health-care/

[2] Rasmussen reports that 36 percent of voters favor the plan, while 56 percent oppose it, including 44 percent who are “strongly opposed,”

[3] “The Citizens of each State shall be entitled to all Privileges and Immunities of Citizens in the several States.” Article IV, Section 2, Clause 1 of the United States Constitution.

[4] Ibid, Article I, Section 9, Clause 8: “No Title of Nobility shall be granted by the United States…”

[5] Erica Werner, Associated Press, “Obama, Democrats Make Closed-Door Deal With Labor Unions on Final Health Care Bill,” 10/15/2010, CNS News.com, at http://www.cnsnews.com/news/article/59869

[6] See [1] and [5].

Public domain photo from photos8.com

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