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Published On: Tue, Sep 15th, 2015

Hollywood union seeking Obamacare exemptions to avoid Cadillac tax

The WGA East is calling for all union health plans to be exempted from the Affordable Care Act’s so-called “Cadillac Tax,” a 40% nondeductible excise tax that is scheduled to go into effect in 2018 on employers who provide high-end health benefits to their workers

In comments filed with the IRS and the U.S. Department of Treasury, the guild said that “the Cadillac Tax would strip away benefits from the basic package of compensation guild members have struggled for decades to win for themselves and their families.”

WGAE contends that “unions and employers negotiate contributions to multiemployer health plans that reflect the economic reality of a particular industry and allocates compensation in a way that meets the employees’ actual needs and aspirations.”

photo Will O'Neill via Flickr

photo Will O’Neill via Flickr

The guild said that “to strip hard-working men and women of these benefits” will “deprive them of the benefit of their bargain,” claiming that the Tax will undo the “good” of Obamacare, which is a “lifeline to many industry workers who don’t earn enough to be covered by their unions’ health plans.”

“President Obama’s signature law has succeeded in bringing health care to millions of uninsured Americans,” the guild said. “In order to avoid a deeply regressive result that is contrary to the stated purpose of the Affordable Care Act, collectively bargained health plans must be exempt from this huge excise tax. This is the only way to ensure that working people who made the rational decision to bargain for a reasonable level of benefits from their employers do not lose their benefits.”

In February, the IRS issued a notice covering issues concerning the Cadillac Tax and requested comments on the possible approaches that could ultimately be incorporated into new regulations.

Back in February 2014, WGA East hosted a panel in New York for union members called “The Affordable Care Act: Comedy, Drama, and Reality: Portraying Obamacare in TV & Film” that was intended to explain the complex health care law to television and film writers, so they could better incorporate it into projects.

Jeff Bridges RIPD stop obamacare meme

 

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  1. Hollywood union seeking Obamacare exemptions to avoid Cadillac tax - InfoPult News says:

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