Sanders to introduce amendment stripping 'Cadillac' tax from Senate bill

Sen. Bernie Sanders (I-Vt.) on Thursday announced he is introducing an amendment to the Senate's healthcare bill that would strike the excise tax on high-cost healthcare plans.

Sanders, a self-described "democratic socialist," strongly opposes the so-called “Cadillac" tax, which he says will hit too hard middle-class workers. The amendment is co-sponsored by Sen. Sherrod Brown (D-Ohio).

“The House has done the right thing; the Senate has done the wrong thing,” Sanders said at a press conference. “I’ve got an amendment in emulating what is being done in the House. We are going to fight as hard as we can to see that win.”

Sanders prefers the House’s method of funding its healthcare reform proposal; a surtax on people in upper-income brackets. The idea, however, does not enjoy much support in the Senate.

“In the House, our colleagues there have done the right thing. At a time when the middle class in this country is collapsing, when unemployment is horrendously high, they are not going to raise taxes on working people to pay for healthcare reform,” he said.

Union interests have also been hardnosed in their opposition to the tax since their members would largely be subject to it. Their position could pose a problem to many Senate Democrats since union members comprise a powerful portion of their support bases.

Representatives from the AFL-CIO, the Teamsters, the National Education Association and Communications Workers of America appeared alongside Sanders and Rep. Joe Courtney (D-Conn.) at the press conference Thursday morning.

Asked if Senate Majority Leader Harry Reid (D-Nev.) has assured a vote on his amendment, Sanders said “We’re working very hard [to get one].” Reid is still determining which amendments will receive votes on the Senate floor.

But Sanders’ amendment may not be the only way to strip the Senate bill of the measure.

Sen. John Kerry (D-Mass.), who first offered the measure, said on Wednesday that he is “anticipating some small adjustments to the excise tax.”

The policy could change in the Reid’s manager’s amendment to be offered at the conclusion of debate on the bill.

Sanders did not say whether or not he would vote for the final bill if it includes the excise tax. “We don’t even know what is in the final bill,” he said. 

This post was updated at 4:13 p.m.

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