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Cadillac Tax Compromise: Win, Lose, Or Draw?

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After three days of intensive eyeballs-to-eyeballs negotiations between union leaders and the President of the United States over the Administration's worker unfriendly tax on healthcare benefits, the unions blinked Thursday night.

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Though not a full surrender as much as a compromise by labor to buy some time for its members, nonetheless the union chiefs will have a possibly daunting task of convincing their members that the still alive, though softened Cadillac tax is not a betrayal of them by both their union leaders as well as President Obama.

According to AFL-CIO President Richard Trumka, the terms of the deal struck are:

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(1) The threshold for families that would be hit by the Cadillac tax was raised from plans costing $23,000 to $24,000, starting in 2013, with proportional increases for individuals in high-cost individual plans

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Retired, Robert Arend was president of an AFSCME local from 1997-2007.

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