This is a monumental week for health care reform. If the Congress wants to stick to the President’s perceived schedule and get a bill to his desk before the State of the Union address, they need to act this week.
The biggest outstanding issue, at least in recent days, has appeared to be the excise tax on high-end insurance plans. President Obama is meeting with union leaders later today to offer his take on why the excise tax is desirable. AFL-CIO President Richard Trumka gave a kind of pre-buttal to the President today at the National Press Club, in a speech that pressed national Democrats to show more courage in standing up to special interests. Much of the speech concerned financial reform, jobs, trade policy and other priorities, but on health care he did not hold back either:
Each of these initiatives should be rooted in a crucial alliance of the middle class and the poor. But today, as I speak to you, something different is happening with health care.
On the one hand we have the House bill, which asks the small part of our country that has prospered in the last decade—the richest of the rich—to pay a little bit more in taxes so that most Americans can have health insurance. And the House bill reins in the power of health insurers and employers by having an employer mandate and a strong public option.
But thanks to the Senate rules, the appalling irresponsibility of the Senate Republicans and the power of the wealthy among some Democrats, the Senate bill instead drives a wedge between the middle class and the poor. The bill rightly seeks to ensure that most Americans have health insurance. But instead of taxing the rich, the Senate bill taxes the middle class by taxing workers’ health plans—not just union members’ health care; most of the 31 million insured employees who would be hit by the excise tax are not union members.
The tax on benefits in the Senate bill pits working Americans who need health care for their families against working Americans struggling to keep health care for their families. This is a policy designed to benefit elites—in this case, insurers, hospitals, pharmaceutical companies and irresponsible employers, at the expense of the broader public. It’s the same tragic pattern that got us where we are today, and I can assure you the labor movement is fighting with everything we’ve got to win health care reform that is worthy of the support of working men and women.
This tough talk was buffeted by a labor liberal in Congress, Carol Shea-Porter, who over the weekend said she would vote against any bill which included the excise tax. While 190 Democrats have signed a letter rejecting the excise tax, I don’t recall any member of Congress making this claim before. Shea-Porter, while generally a liberal, won her seat in 2006, and faces a fairly tough re-election battle. This movement on the health care bill may be as much about November as it is about any firmness on the excise tax.
Trumka, in follow-up remarks on the health care bill, basically said that 2010 is on the line in the legislation:
Asked whether workers would stay at home in November if the health care bill doesn’t accomplish those goals, Trumka was blunt.
“I think there’s that chance,” he said. “I think the American public, and workers are out there and they’re looking for a couple things right now. Health care is an important issue to them. Jobs are an important issue. I think those people that don’t show a sense of urgency about both of them, I think they’re going to face the scorn of workers at the polls.”
Clearly, the financing of the bill is becoming the flashpoint which could actually sink health care reform. We will see if labor – and some shaky Dems – can be mollified.
UPDATE: Shea-Porter spokeswoman Jamie Radice just emailed a statement saying that the Congresswoman has NOT made an ultimatum on the excise tax:
“Both in private and in public, Congresswoman Shea-Porter has never said that she would vote for or against a final health care reform bill if it contained an excise tax. She has spoken out forcefully against this tax, which is contained in the Senate’s health care reform bill, but she is waiting to see what the conference report looks like before making any final decisions. She remains in support of the House version.”



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Trumka rocks. His is the best synopsis of the case against the Cadillac tax I’ve seen so far. It pits the middle class against the poor. Outrageous.
Trumka is right on many things, including this. Solidarity.
…maybe it’s time for non tea drinkers to March on Washington
And yet the excise tax is a martini on an iceberg of this insurance-friendly, citizen-harming legislation.
Tuned in at the end. Trumka was rocking. The mod tried to cut him off after 25 minutes and he held his ground. Said NPC invited him and he was gonna finish his speech. A small point (and the mod is a whiney pest), but one can “hope” that Trumka stands up the same way to O.
The other point I liked in the small portion I saw (was on cspan), was that he really called out Clinton, and said they wouldn’t make the same mistake again.
Go Trumka.
Looks like he’s not buying the CW that labor will fold on health care because they’re afraid of RahmbObama abandoning EFCA.
I just have to agree. Arguing about the excise tax I suppose should be done, but it is like an endgame in an already-lost chess match. For proponents of serious reform, it is like debating whether you want 00 buckshot or a solid slug in the shotgun you are intending to shoot yourself with.
Maybe he already knows it’s a lost cause with Obama/Rahm. Or he’s anticipating O/R needing his support in 2012.
It’s a lost cause and he knows it.
Before he went into this he was heard saying “we’re probably not going to win on this”. They”ll put up a stink then back off.
And why?
Because if you look on HuffPo there’s our friend again promising EFCA will pass this year.
they made a deal, but it’s a deal Obama will screw them on.
I’d like to see him take it a step further… Say labor will actively oppose any candidate the votes for excise tax regardless of party. Its not about Republican vs. Democrat. Its class warfare rich elite vs ordinary americans and its time we started taking it to them.
Democrats don’t a shit about working people. But they sure get fired up over important stuff like whether the “proper” term is Negro vs. black vs. African-America vs….whatever. In the meantime back on Wall Street the rape continues…
He prbly knows they are going to abandon EFCA anyway!
I was mostly seeing Republicans getting excited over the proper term thing. What did I miss?
That negro crap is a diversion to keep us from focusing in on the important stuff. It pains me to see Ed Shultz waste 15 minutes on that crap this evening. Obama is a well spoken negro and as an African American man I think Reid was being remarkably perceptive when he labeled Obama a negro.
That’s a crucial one. It seems like many labor leaders are willing to play Charlie Brown with the football one more time.
Leave it to television news…
I thought Reid’s basic point was perceptive. Obama is well-spoken. He certainly doesn’t exhibit the sort of behavior white folks find upsetting.
No doubt about it, Obama is going to screw them as soon as the issue comes up. The Union leadership are being taught a painful lesson for endorsing democrats no matter what. As a former union steward I know that the rank and file dont vote in lockstep with their leadership now, continuing to support Obama after he screws them on health care is a mistake that labor cant afford to do.
Trumka gives the best and easiest-to-understand explanation of this f***ed-up health care bill that I’ve seen yet. I wish Obama well in a generic sort of way, but if he’s going to try and shove this bill through just to get another notch on his resume, then we should tell him to shove it, too.
How in God’s name is EFCA going to pass this year, unless it’s even more watered-down than HCR? There can not be, no way, no how, 60 votes in the Senate to get to cloture on labor law reform. And Pelosi has said the House won’t take up anything that hasn’t already run the Senate gauntlet.
So, what Trumka’s doing here most likely is laying down a mark. What I’d like to see is something close to the Senate bill get enacted, then go back and have the House, followed by the Senate, using reconciliation rules, fix the tax problems. Trumka ought to have the clout to pull that off.
EFCA passed the house with 241 votes in 2007 and had 51 votes in the Senate. I think that it has a good chance of passing this year.
That’s what I’ve been saying. Get as big as pie as you can with 60 Senate votes and then use reconciliation to get everything else we want, like a public option.
Both Trumka and Ron Gettelfinger (UAW President) are impressive and Gettelfinger in particular is an excellent speaker. Both are very bright and more forceful than most prior labor leaders.
Let’s hope that they put more pressure on the Democrats. Labor should also realize that they have the power, the numbers and the votes to effectively challenge the Democratic party and set up something like the British Labour Party. If they did so, they would have not only union voters but lots of progressives, most democrats from the democratic side of the Democratic party, and probably lots of green people too.
THAT IS THE THREAT that Trumka and Gettelfinger should be using against Rahm Obama.
Right on all counts except the voting numbers.
Organized labor votes were not decisive in the 2008 presidential campaign and not likely to be decisive in 2012 either.
Labor and it’s members contributed over $400 million in 08 elections – they were equally generous with their time on campaigning and GOTV – and had a significant impact in Indiana, Pennsylvania, and Ohio
and in what is historically an off year for the Party in Power, Dems will really need this cash and those boots on the ground in 2010 midterms
I have yet to see a rational explanation for this unprecedented shafting of a major constituency by this WH
David Dayen – I knew I could come over here to get some reporting on this event – thank you
and thank you Jane Hamsher
David or anyone –
what about Trumka’s uncharacteristically boastful – ‘EFCA will pass in 1Q 2010′ is there a deal being cut ???
Rational explanation?
How about the following:
Labor — like African-Americans, LGBT, etc. — is a “captive” constituency of the official Democratic Party. That is, we are so thoroughly despised by the Republicans that we have no choice to align with the Democrats, and must accept whatever crumbs are thrown our way.
Hear Hear. Its obvious that the Democrats and Republicans are incapable of governing at a time when the country is in crisis. The right is responding with their Tea Party. The left must respond with an American Labor Party. Only the working class has the muscle to overthrow the Oligarchy.
SOLIDARITY
Rational explanation?
How about the following:
White House staff considers that it has already done a great deal to reward labor support. For example:
1) Presidential executive orders on project labor agreements that benefit the building and construction trade unions
2) Bailouts of Chrysler and GM that protect the UAW from total dissolution
3) Presidential appointments that please key labor unions — DOL (and OSHA), NLRB, NMB, etc.
4) Unprecedented access to the White House for Andy Stern and his minions, while also offering public support to the AFL-CIO side
5) Commitment to support selective legislative initiatives favored by labor — such as EFCA and inclusion of labor jobs in energy legislation.
6) Reversing Bush-era efforts to stifle federal employee unions
Rational explanation?
How about the following:
Barack Obama, with the “benefit” of a high-priced Ivy League education, is deeply suspicious of labor unions.
He knows that no history of African-American history is complete without mention of the fact that many unions (and famed union leaders) embraced legal segregation till the bitter end.
He knows that there are significant elements of unionized labor today where African-Americans are routinely excluded, or relegated to marginal positions.
He knows that many of today’s labor leaders would have preferred John Edwards or Hillary Clinton had been the Democratic Party nominee in 2008.
He knows that labor is organized in a sort of feudal system, where self-appointed lords rule over ever-shifting fiefdoms, with no loyalties except to their own pocketbooks.
He knows that organized labor has no allies in the elite circles of the American economy.
Yup, let them keep the Cadillac plans so they can run to the doctor for every cough and sniffle, and all the kids can be on Ritalin, while the rest of us are on the outside looking in.
“Cadillac Plan” = employer provided plan, whether or not the plan is good or bad, whether or not the employee belongs to a union, whether or not the employee is paid well or poorly.
The Obama administration is splitting the have-not class in a manner that would do the Republicans proud, and you’re falling for it. It keeps your mind off the fact that he won’t touch Bush’s tax cuts for the privileged top 1-2 per-cent.
Pimp your fucking shoes somewhere else, asshole.
Taxing these high cost plans is a good idea. We need revenue to provide for the uninsured and these plans are part of the problem that is running up health care costs.
Unions should chill the fuck out. The Obama administration is the friendliest administration that organized labor has had in a long, long time. EFCA will pass. It probably will be changed to get to 60 votes and then we can all see the usual crybabies on the left complain that the bill is not perfect. Please show me one bill that has ever passed Congress and signed into law that has been perfect and where the left has gotten everything they wanted. Please point me to this holy grail of the legislation process.
Too little, too late. These guys can play the wounded warrior game all they want. But the big labor gave away it’s leverage early on by abandoning the threat of single payer or otherwise showing independence from the Dems. But, hey, we all love a good speech.
I’m seeing real delusion on the part of some Dems, as they rapturously fall for Obama’s “Kite the Pony” strategy. Here’s how it works: Don’t make a fuss about losing single-payer, he has a public option up his sleeve. Don’t worry about losing the public option, he has Medicare for all waiting for you. Don’t complain about the scuttling of Medicare for all, your getting THE BEST GENUINE PRIVATE INSURANCE THAT YOU CAN AFFORD!
So, all you union and blue-collar folks, rest assured that if you just submit to the excise tsx on your employer provided benefit, you’ll get EFCA this year, yes right now in 2010!