Taxing The Cadillac

Health care reform? Surely you jest!

This week’s snafu is about taxing so-called Cadillac plans, that is those that cost families and/or employers more than $20,000/year.

It’s a good way to raise money to pay for reform, and it’s a good way to discourage insurance companies from offering expensive plans.

But it’s not popular with labor unions, Know Nothing anti-taxers, and some House Democrats.

What this shows, yet again, is the stupidity of the link between employment and health insurance. Employers get big tax breaks for offering the insurance, while employees are shielded from the true cost of health care.

Rather than simply provide insurance to all, regardless of employment status, via Medicare, a far more cost effective solution, the “debate” at present is essentially about how much profit and how much cherry picking the insurance companies can get away with. It’s certainly not reform.

Gorilla says: “We taxpayers already own Cadillac, so why not take ownership of health insurance plans as well?”

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