Proposed Tax on Healthcare Insurance to be Opposed by Unions
Proposed Tax on Healthcare Insurance to be Opposed by Unions

During the 2008 election campaign, millions of blue-collar workers were more favorable towards John McCain, but labor unions swayed many of these workers' decision by repeatedly saying that Mr. McCain wanted to tax their health benefits, and they should thus go the Obama way.

But now, all the labor leaders are very upset with President Obama's act of endorsing a tax on high-priced, employer supported health insurance policies, with the aim to help cover the cost of the healthcare revamp.

As Senate and House leaders now look to discuss and negotiate a final health care bill, unions are aggressively pushing to have that particular tax cut from the legislation, or at least, they say that the price threshold should be raised so that the tax affects fewer workers.

As per the labor leaders, the new tax would not affects the high-earnings executives alone, but also various "rank-and-file union members" who often end up settling for lower wage hikes in exchange for more generous health benefits.

As per the current proposal put forward, the tax would affect individual insurance policies with yearly premiums which go beyond $8,500 and family policies over $23,000.

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