The Obama administration wanted to get rid of the “regressive, inefficient and expensive tax subsidy provided for employer provider health insurance” under Obamacare, but it turned out to be a politically expensive move, Jonathan Gruber said at a 2011 Pioneer Institute lecture on health care.
Instead, administration officials decided to mislead the American public by “mislabeling” the so-called “Cadillac tax” as a tax on health insurance plans, the Obamacare architect revealed. It seems that the move worked, and the law is well on its way to removing the “terrible” subsidy for good.
“It turns out politically it’s really hard to get rid of,” Gruber says of the subsidy in a sixth video that was circulating Friday. “And the only way we could get rid of it was first by mislabeling it, calling it a tax on insurance plans rather than a tax on people when we all know it’s a tax on people who hold those insurance plans.”
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