Another Democrat Fight

By PoliPundit ~ October 4th, 2009 @ 2:42 pm

If you think it’s hard for House Democrats to agree on a public option, it’s even harder for them to agree on taxes to pay for Obamacare:

House Speaker Nancy Pelosi and fellow House Democratic leaders next week are expected to wade into the treacherous waters of how to pay for the House healthcare bill as they continue to negotiate the shape of the bill behind closed doors.

Throughout September, House leaders held more than 60 hours worth of caucus meetings with rank and file Democrats. But many problematic issues remain unresolved, and so far they have not decided what taxes to raise, or whether to raise them at all.

The most public debate is about the “public option,” as Pelosi tries to mediate a burgeoning feud between liberals and centrist Blue Dog Democrats about what form the government-run plan should take in the legislation.

But the tax question could be even more divisive within the Democratic Caucus, pitting union allies against business-minded centrists who believe that a tax-the-rich strategy will backfire by hitting small business.

Pelosi appears to have sparked a revolt among unions and a significant portion of the Democratic Caucus by suggesting last month after one of those closed-door meetings that she might be open to raising taxes on so-called “Cadillac” insurance plans.

Rep. Joe Courtney (D-Conn.) announced Friday he’s collected more than 100 signatures on a letter to Pelosi asking her not to support the tax on health plans. The tax on benefits, he said, violates Obama’s campaign pledge not to raise taxes on the middle class.

“It shifts the burden of who’s really going to pay to those making below $250,000,” Courtney said.

The Baucus bill taxes “Cadillac” plans too.

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1 Response to Another Democrat Fight

  1. MI Conservative

    But isn’t it a fee, not a tax according to liberals??? Explain that one.

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