As someone who has served on a local budget committee for several years I can tell you there are times when local politicians take the brunt of it for tax increases that are outside their control. School boards get the worst of it because they are forced to comply with state and federal mandates pushed down on them which often times require additional spending but do not deliver additional outside funds.
Ayotte wrote the letter in response to concerns raised by Mayor Ted Gatsas over the possibility that the city and school district could be hit with a combined $5.8 million tax bill in 2018 if its current health plans remain in place. The Cadillac tax is to be levied on employers who offer unusually expensive health plans to their employees.
“This significant new tax burden will put additional pressure on municipalities like Manchester that are working diligently to balance their budgets and operate in a fiscally responsible manner,” Ayotte wrote in the letter to Obama, which was presented to the Board of Mayor and Aldermen at its meeting Tuesday.
U.S. Democratic Rep. Annie Kuster also replied to his letter, stating that she shared concerns about the impact of the tax, while also pointing out the positive aspects of the health law.
Starting in 2018, the Affordable Care Act will levy excise taxes on employers whose health plans cost more than $10,200 for individuals and more than $27,500 for families. The plans will be taxed at 40 percent of the cost above those limits.
The issue is a pressing concern for the city because most of its union contracts expire in a year, while the city’s largest union, representing teachers, has yet to come to terms on a new contract.
Contracts typically run for three to four years, and health care costs are a key component.
I could not find any comments from Carol Shea Porter or Senator Shaheen on the burden this is putting on local NH communities.
How many people seeing their local property bills going up will make the connection between that and ObamaCare being the cause? This goes hand in hand with the other story I put up about how uninformed the young voters are today, found HERE.
This is why people need to be informed. Voters will beat up local politicians over things they have no control over and cheer for the same federal level politicians causing their problems.