The Cadillac tax on insurance, and the auto unions: Investors.com

Summary: Here comes the Cadillac tax, and one place where it will be meaningful is in the auto industry, as Investor’s Business Daily points out: “The four-year contract that GM, Fiat Chrysler and Ford (NYSE:F) will hammer out with the UAW will cover the beginning of the so-called Cadillac tax, an ObamaCare provision that goes into effect in 2018. A 40% excise tax will be levied on health insurers for plans that exceed certain cost thresholds: $10,200 for individuals and $27,500 for families. The insurers will likely pass on Cadillac tax costs to employers, who will then split it with workers. The U.S. auto industry is looking at a hefty tab. According to the Center for Automotive Research (CAR), the average package for individuals at GM, Ford and Chrysler costs $16,000. ‘Health care is a third rail for UAW workers,’ said Kristin Dziczek, CAR’s assistant research director. ‘If automakers came back and said, “We want you to pay more,” that could be a deal breaker.’ ” Source: Cadillac Tax, Tiered Wages To Steer Auto Union Talks GM F FCAU – Investors.com