Liberals suddenly discover tax incentives when taxes are aimed at labor unions

It's amazing how liberals suddenly understand the power of economic incentives whenever those incentives are turned against one of their priorities

Without even stopping to think, they will raise taxes, impose devastating, costly health and safety regulations that make little difference to health or safety, implement draconian environmental rules, and expand opportunities for trial lawyers to prey on businesses. When they do, you won't get very far trying to point out to them that such policies cause Americans to lose their jobs and their health care. Liberals envision robust government as the solver of workplace problems and guarantor of a more equitable distribution of wealth.

But try to impose even the slightest restrictions upon, or create a legal cause of action against an abortion clinic, and suddenly there's a huge problem.

Bob Herbert's column of today in The New York Times offers a great example of this. The Senate version of ObamaCare imposes a tax — he correctly calls it “confiscatory” — on gold-plated insurance plans. This provision will not affect most middle or even high-income workers, but it strikes squarely at labor unions and their members, and everyone knows it. And so he writes:

There is a middle-class tax time bomb ticking in the Senate's version of President Obama's effort to reform health care.

The bill that passed the Senate with such fanfare on Christmas Eve would impose a confiscatory 40 percent excise tax on so-called Cadillac health plans, which are popularly viewed as over-the-top plans held only by the very wealthy. In fact, it's a tax that in a few years will hammer millions of middle-class policyholders, forcing them to scale back their access to medical care.

Herbert argues that such a tax will encourage businesses to scale back their health care plans so as to avoid the tax. Bob Herbert is 100 percent correct. Welcome to the real world, sir.

— Beltway Confidential

Beltway ConfidentialUS

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

Mayor London Breed, pictured here at a May news conference, will be fined for unethical behavior by The City’s Ethics Commission. (Kevin N. Hume/S.F. Examiner)
Commission fines Mayor Breed over $22,000 for ethics violations

The San Francisco Ethics Commission will fine Mayor London Breed a reported… Continue reading

Salesforce Tower in San Francisco, which features a comprehensive water-recycling system, on July 30, 2021. Water recycling in office buildings is seen as a promising sustainability effort, as well as a smart hedge against rising costs and future shortages. (Jim Wilson/The New York Times)
Salesforce Tower is part of a nationwide water recycling trend: Here’s how it works

By Patrick Sisson New York Times When Salesforce Tower in San Francisco… Continue reading

Riders enjoyed a trip on a Powell Street cable car when service returned on Monday. <ins>(Kevin N. Hume/The Examiner)</ins>
<ins></ins>
San Francisco’s cable cars return after 16-month absence

San Francisco’s cable cars are back, and they’re free for passengers to… Continue reading

Most Read