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08_Latest News - January 2010

08_January 16, 2010
Uniongate: The Straw That Broke Obama’s Mandate
By John Romano -

Haiti, Haiti, Haiti. Conveniently, it is the cover most of the press is using to avoid shining a bright light on Barack Obama and Congress’ shameful giveaway to unions.

Make no mistake: if you have the same job, with the same wage, your tax status, in regard to health care, will be determined on whether you are part of a government-favored union. A union that most likely campaigned for, and gave thousands of dollars to, President Obama’s campaign. Ditto for government workers.

Starting in 2013, non-union employees will be subject to a “Cadillac” tax on comprehensive health plans. Unions and government workers will be shielded from the tax until 2018. At which point, a Democrat controlled Congress could either make the giveaway permanent or defer it on a year by year basis, just as they currently do with Medicare reimbursement rates and the AMT inflation ruse. The bottom line is, if passed, unions and government workers will most likely never be subject to the Cadillac tax.

Congress and the President now have to figure out a new tax to take the place of the $60 billion given away to Democrat-donating unions. $60 billion dollars more in taxes will be paid by non-connected Americans over the next ten years to ensure that inefficient union workers, who back Mr. Obama’s opening salvo for a single-payer health care system, are placated.

Democrats will attempt to underplay the significance of the union deal, heretofore to be called “Uniongate”. Why? Because it is an indefensible act of corruption on the part of the President and leaders of Congress. Better to act like it doesn’t exist, and hopefully the rubes, you and me, will forget about it.

I predict that it will not be forgotten at all. It is just too big a deal and will grow like an undiagnosed tumor if it passes as part of a final health care deal. If Mr. Obama and his agenda suffer the wrath of voters in 2010 and 2012, look to Uniongate as the moment when the tide truly turned in favor of the GOP.

A couple of Mr. Obama’s most friendly media outlets, like The New York Times and The Los Angeles Times, have come out in favor, albeit weakly, of the union giveaway. Both outlets may soon be looking for their own government handout and wouldn’t dare bite the hand that would feed them. However, even they don’t have the heart to mount a full-force defense of the measure. Not a good sign for the President.



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