To tax or not to tax – Cadillac plans misunderstood

Proponents of taxing so-called Cadillac Health Care Plans suggest that if these plans are taxed then employers will shift the dollars they put into the plans to workers’ wages.

At least that’s the argument of the White House consultant Jonathan Gruber, who now at least admits his role as a (very well) paid agent of the Obama Administration. (Even the official Obama newspaper, the New York Times, got pissed at Gruber for his obfuscation.)

Perhaps Professor Gruber should spend some time with his colleagues in the industrial relations group at Sloan’s business school. A dollar taken away from health care goes back to the corporation where it is the property of the corporation’s shareholders as represented by their board of directors  There is nothing, other than the collective power of an organized work force, that can force those directors to redirect that money into higher wages for workers.

Unless Professor Gruber is suggesting that we amend the bill to mandate that that happen.

Or that we pass other laws that make it easier for workers to organize in support of higher wages….don’t hold your breath.

The plans, in any case, are misnamed by the Obama Administration on purpose to suggest that they are a luxury. In fact these are plans that have been fought for by workers and their unions for decades. They should be the standard that we all aspire to not taxed and destroyed as will happen under the Obama proposal.