The White House’s defeat on that, as well as several other Obamacare taxes, comes as a series of problems have piled up since coverage expansion kicked in two years ago, from collapsing co-op health plans to double-digit premium increases. No single one of them is likely to prove fatal, but together they have significantly weakened the law that Obama spent much of his presidency fighting for.
By joining with Republicans to delay the Cadillac tax, in particular, the president’s party chose the short-term demands of organized labor — a key ground-game player going into an election year — over the long-term goals of Obamacare. They offered fresh ammunition to Republicans who say the law is a money pit. And they showed a lack of political will to make Americans change their habits on health care spending.
“Is it the death knell? No. But it is harmful,” said Peter Orszag, Obama’s OMB director during the drafting of the law.