The Los Angeles Port strike caused by dispute over Obamacare tax
Feb 20, 2015
I had heard on the mainstream news that the conflict between the longshoremen and the port authority that it was about “health care benefits.” But they failed to tell us exactly what the problem was.
It appears that to pay for Obamacare, the government is taxing those who receive the best benefits—such as the longshoremen. The dispute is over who will pay for this tax. Will it be taken out of the health benefit fund, thus decreasing their benefits? Or will the company itself pay the difference?
Obamacare imposes a 40 percent tax on health benefits deemed too generous by the government. Health benefits exceeding $10,200 a year in value for individuals or $27,500 for families are defined as “Cadillac” plans and are subject to the tax. Health benefits for longshoremen exceed $40,000 per employee, meaning the union would be served an enormous tax bill when the penalty is imposed in 2018.
The longshoremen’s contract expired in July, 2014 and contract talks have stalled, in large part, over whether workers or employers will pay the new Obamacare tax. The longshoremen are the first union to negotiate a contract that would extend beyond the time the tax is first imposed.
“This will come up in just about every contract negotiation out there,” J.D. Piro, a health-benefits consultant, told Bloomberg News. “Every employer is going to be calculating when and if they hit the threshold and how they’re going to pay for this.”
Who could have guessed that Obamacare could shut down the US economy and make everyone angry?