Gruber Wanted To Play Labeling Game To Get Rid Of Health Care Tax Breaks In 6th Video

Sheesh, I didn’t even get a chance to opine about the 5th video, and along comes a 6th. In the fifth, Obamacare architect Jonathan Gruber mocks critics as “adolescent children”. Pretty derogatory language for someone getting paid hundreds of thousands of taxpayer dollars. Jake Tapper, one of the only reporters truly covering this, tells us

(CNN) In a 2011 conversation about the Affordable Care Act, MIT economist Jonathan Gruber, one of the architects of the law more commonly known as Obamacare, talked about how the bill would get rid of all tax credits for employer-based health insurance through “mislabeling” what the tax is and who it would hit.

The issue at hand in this sixth video is known as the “Cadillac tax,” which was represented as a tax on employers’ expensive health insurance plans. While employers do not currently have to pay taxes on health insurance plans they provide employees, starting in 2018, companies that provide health insurance that costs more than $10,200 for an individual or $27,500 for a family will have to pay a 40 percent tax.

“Economists have called for 40 years to get rid of the regressive, inefficient and expensive tax subsidy provided for employer provider health insurance,” Gruber said at the Pioneer Institute for public policy research in Boston. The subsidy is “terrible policy,” Gruber said.

“It turns out politically it’s really hard to get rid of,” Gruber said. “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.”

If you think that’s bad, it get’s much, much worse

The second way was have the tax kick in “late, starting in 2018. But by starting it late, we were able to tie the cap for Cadillac Tax to CPI, not medical inflation,” Gruber said. CPI is the consumer price index, which is lower than medical inflation.

Gruber explains that by drafting the bill this way, they were able to pass something that would initially only impact some employer plans though it would eventually hit almost every employer plan. And by that time, those who object to the tax will be obligated to figure out how to come up with the money that repealing the tax will take from the treasury, or risk significantly adding to the national debt.

Unions and employers who object in 2018, he noted, “at that point if they want to get rid of it they’re going to have to fill a trillion dollar hole in the deficit…It’s on the books now.”

The remarks start at the 30:38 mark at this link.

Meanwhile, as I write this at 7am, Fox News is talking about yet another video to surface with Gurber talking about Ocare being a hoax.

Crossed at Pirate’s Cove. Follow me on Twitter @WilliamTeach.

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