White House, Big Labor Near Deal on Health Care Tax Break

From The Washington Post’s 44 blog, Lori Montgomery reports, “White House, unions reach deal on taxing insurance coverage“:

The White House has reached a tentative agreement with labor leaders to tax high-cost health insurance policies, sources said Thursday…The deal would temporarily exempt union health plans from a significant surtax on unusually generous health policies plans, giving union leaders time to negotiate new contracts, according to sources familiar with the talks.

Hat tip Daniel Foster, The Corner, who cites a report from CNN’s Steve Brusk that the deal would delay taxes on health-care policies for union members, state and local workers until 2017.

At Kausfiles, Mickey Kaus had suggested that the President might win labor’s support for the excise tax on high-value plans by promising to help pass some form of Employee Free Choice Act passed. But that’s a difficult promise to keep politically.

Labor will just have to be satisfied with getting everything else it wants.

UPDATE (1:30 p.m.): Politico, “Source: Tentative deal on Cadillac plans

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