By: Attorney Nathan Simpson

In recent days, news outlets are reporting on a surprising unintended victim of Obamacare: Labor Union health plans. Forbes and The New York Times are reporting that Obamacare will have a drastic impact on both public and private sector labor unions, both traditional Democratic allies.

The law contains a hidden tax on so-called “Cadillac” health plans, which was sold to the American people as a tax on the health plans of wealthy executives. What most Americans did not know was that it would have the biggest impact on regular, hard-working Americans such as teachers, first responders, or factory workers with union contracts. Over the past few years, unions negotiated increases in health benefits in place of monetary compensation. This was a win-win for employees, who received better benefits, and employers, who benefited from preferential tax subsidies for offering health benefits. [Read more…]