Pelosi exempts middle class from ‘Cadillac’ tax in health reform

In health care reform legislation being debated behind closed door in the House, Speaker Nancy Pelosi (D-Calif.) looks to exempt taxpayers making less than $250,000 from paying the tax on high-end insurance plans, known as “Cadillac” plans.  

The exemption aligns with President Obama’s campaign promise to not tax families earning less than $250,000 a year.

Obama last month proposed creating a tax on so-called Cadillac insurance plans costing over $10,200 for individuals and $27,500 for families.

A formal bill has not been introduced, so it remains to be seen if the exemption will be a part of the final package the chamber eventually votes on.