Determining how to pay for their massive healthcare reform efforts has been a struggle for Democrats. There have been many proposals, ranging from cutting some funds from Medicare to increasing taxes on certain income brackets to taxing plastic surgery procedures. An enduring suggestion has been that the government impose an excise tax on the purchase of high-cost health insurance plans.

Although the Senate has included such a tax in their version of healthcare reform legislation, the House of Representatives has shied away from it. Many Democratic representatives are worried about alienating organized labor, a key constituency for the party. Labor unions contribute millions of dollars to Democratic candidates, which is especially necessary when they are up for tough re-election fights. Read the rest of this entry »