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Posted: 8:42 a.m. Monday, June 29, 2009
By Neal Boortz
I mentioned this one on the air last week, but it is so outrageous that it is worth repeating. When it comes to healthcare reform, the Senate is considering the idea of allowing union-negotiated benefit packages go un-taxed. Yep, as I just talked about in the Nuze item above, there is still an option on the table that would tax employee healthcare benefits. However, if that plan makes it into the bill, union-negotiated contracts would be exempt from paying these taxes.
You can thank Senate Finance Committee Chairman Max Baucus for this one. He's the one that believes that any major changes to the US healthcare system should exempt perks secured by existing collective bargaining agreements. In other words ... they would be grandfathered in. Chris Edwards of the Cato Institute makes a good point. He says that this "smacks of political favoritism ... "I can't think of any other aspect of the individual income tax that treats benefits of different people differently because of who they work for."
So this would be a way to still tax benefits, but magically exclude 12.4% of American workers who happen to be union members. In the end, who is going to have more of a say come election time?
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