Obama Prefers ‘Cadillac Tax’ to Fund Health Care January 7
President Barack Obama reportedly expressed to top members of the Democratic house that he prefers the so-called “Cadillac Tax” as a source of funding for the new health care bill’s provision to extend insurance coverage to people who cannot afford them.
“Cadillac Tax” is the moniker given to a feature of the Senate health care bill which will entail a tax on insurance companies that will offer more expensive health care plans.
The President revealed his preference during a meeting held on Wednesday. It was the second such meeting in two days, as the White House chose to take a more active role in the final negotiations on the health care bill. The health care debate is expected to end soon. Leaders of the House of Representatives and the Senate are trying to arrive at a compromise and put together a single, unified bill that will be sent to the President before he delivers his State of the Union address.
The method of financing is one of the points of disparity between the Senate and House versions of the health care bill. The House bill chose a tax hike for the higher-income taxpayers as a source of funds. With the President choosing the Senate’s proposed financing scheme, the House may reportedly be pressured to adopt “Cadillac tax” as a compromise.
The more hands-on role that the White House chose to take at this point is said to be welcomed by the Democratic leadership.
A senior healthcare advisor during the Clinton administration, Chris Jennings, was quoted as saying: “The White House recognizes that it’s time to step up. They need to spend capital in order to get this over the finish line. It can be extremely helpful because, fundamentally, you don’t want to delay any longer than you have to. Their involvement can accelerate this from a political and technical perspective.”
Tags: health care amendments, health care bill, health care funding, health care proposal, health care provisions, US health care
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