Excise Tax Update

January 14, 2010 -- We are fully aware of the media reports this afternoon that there has been a deal reached between "labor," the White House and Congressional leaders on the excise tax in the health care reform legislation being debated.

On a conference call with the AFL-CIO Executive Council just minutes ago, AFL-CIO President Richard Trumka provided a report that outlined that purported "deal."

Let me state right here that this IAFF was not afforded an opportunity to be a part of the labor committee that participated in negotiations with the White House and Congressional leaders over the changes that are being reportedly made to the excise tax provision in the bill.

On Monday, January 11, in a conference call with the Executive Committee of the AFL-CIO, conducted prior to the first meetings between the labor committee and the White House, I made it very clear to the union leaders who were selected by Trumka to go into those private discussions that our union was fully and completely opposed to any excise tax because it would either force a tax on the premiums of our members or force their health benefits to be cut. I was the only member of the AFL-CIO Executive Committee to take that position and our position was widely covered in the media over the past week.

In addition, as late as 1:30 p.m. this afternoon (January 14), I was one of four labor presidents invited to speak before the House Leadership and Democratic Caucus. At that event, I was the only speaker who, in very clear and emphatic terms, strongly reiterated that this IAFF remains completely opposed to an excise tax. I reaffirmed that this is bad policy and bad politics.

While the reports of the "deal" appear to show that the thresholds have increased and that state and local governments may have received a multi-year exemption, which should serve to ease the burden on our members, I still find it unacceptable that a form of the excise tax remains in the bill.

Internally, we will be analyzing the affects of any changes to the excise tax provision once they are formally released. Rest assured that this union will continue to fight the excise tax so that it doesn't affect any of our members and we will continue to update you as this process moves forward.

January 11, 2010 Message from President Schaitberger on Excise Tax