Hillary Clinton, the Democratic Party’s front-runner in the primary for president, said at a campaign stop in New York she wants to “build on” Obamacare – but in a
move aimed at courting union support, added she wants to cut out a key aspect of it, the “Cadillac tax.”
Her goal is to expand coverage in a cost-effective way for the middle class, she said, the Associated Press reported. And the “Cadillac tax,” she said, only raises costs for health care consumers.
“I have proposed new reforms to build on the progress we’ve made and lower out-of-pocket costs for families,” she said, AP reported. “Too many Americans are struggling to meet the cost of rising deductibles and drug prices.”
Union members in particular hate the “Cadillac tax,” the fee assessed those with top-of-the-line coverage that is criticized by Obamacare supporters as encouraging unnecessary treatments. Many in the rank-
and-file have turned toward Sen. Bernie Sanders, who has just introduced a plan to repeal the tax.
Teamsters, meanwhile, just told Fox News they’ve hesitated to endorse Clinton because they’re waiting to see if Joe Biden will enter the race, and also how Donald Trump fares on the Republican side. Trump has
reached out in the past to union members and negotiated with them during his business dealings, and his “make America great again” is resonating.
The problem with repealing the “Cadillac tax” is it provides a good portion of Obamacare’s funding. Kaiser Family Foundation reported up to 26 percent of all employers would face paying the tax, at least for a year, AP reported. And the Joint Committee on Taxation estimates the 10-year cost of its repeal at $91 billion.