How Democrats Prevailed Over Obama on the ‘Cadillac Tax’

As recently as three weeks ago, one of President Obama’s top advisers warned Democratic leaders to leave the “Cadillac tax” alone.

Asked on Dec. 1 whether Obama would veto any measure that chipped away at the unpopular tax on healthcare benefits, White House chief of staff Denis McDonough was stern.

“Yes, it is true,” McDonough replied at a private luncheon that was attended by House Minority Leader Nancy Pelosi (D-Calif.) and Whip Steny Hoyer (D-Md.).

Democrats were undeterred.

Pelosi and her Senate counterpart, Harry Reid (D-Nev.), forged ahead with secret budget talks with GOP leaders where they sought to delay or even repeal the tax before it took effect in 2018.

And two days after the luncheon, the Senate took a symbolic vote to repeal the ObamaCare tax by an overwhelming 90 to 10 margin.