08 Sep 2009 Outrage of the Day: ObamaCare Would Tax Some Workers So Others Could Retire Early
James Sherk of the Heritage Foundation highlights once again a genuine travesty included in the President’s health care reform proposal, a $10 billion bailout of labor unions.
Sherk writes, in part:
…The most obvious benefit President Obama’s health care plan provides to organized labor is a $10 billion taxpayer bailout for underfunded retiree health benefit plans. Many unions negotiate benefit packages that allow workers to retire early and collect health benefits until they qualify for Medicare. Many of these plans they are underfunded because unions mismanaged them.
The healthcare legislation transfers $10 billion to these accounts, in the form of a reinsurance program that pays most of the cost of claims for workers in these plans. Like the GM and Chrysler bailouts, the health care legislation requires all taxpayers — including low income workers without retirement plans–to pay for benefits for already well-compensated union workers…
1) The bailout is intended not for poor or disabled people, but people with jobs who would like to retire before reaching age 65;
2) The bailout would be paid for by taxpayers, most of whom will not enjoy the leisure and other benefits of retiring before 65. Many will not be able to retire even at 65;
3) The unions had funds available to pay for these benefits, but they mismanaged them.
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