At a town hall meeting on health care on July 23 , 2009 in Shaker Heights , Ohio , Obama explained that the thinking of the Cadillac tax was to target plans that spend unnecessarily and excessively , thus driving up health care costs , such as a $ 25,000 plan , `` At issue is the tax breaks business get for providing employees health insurance . The Obama administration has said that it will not enforce this part of Obamacare, but Republicans say they want to make sure businesses don't have an advantage over their workers in getting subsidies. MIT economist Jonathan Gruber said tax breaks to employers for all plans are 'terrible policy ' Eventually every health insurance plan would be affected by the law due to inflation .
At issue is the tax breaks business get for providing employees health insurance . The Obama administration has said that it will not enforce this part of Obamacare, but Republicans say they want to make sure businesses don't have an advantage over their workers in getting subsidies. MIT economist Jonathan Gruber said tax breaks to employers for all plans are 'terrible policy ' Eventually every health insurance plan would be affected by the law due to inflation .