White House, Unions Reach Deal on 'Cadillac Tax' Agreement clears one of the biggest obstacles to final bill By John Johnson, Newser Staff Posted Jan 14, 2010 3:22 PM CST 35 comments Comments Senate Majority Leader Harry Reid speaks outside the Senate chambers in this file photo. (AP Photo/Mannul Balce Ceneta) (Newser) – The White House has struck a deal with unions on how to tax generous health insurance policies, one of the last major sticking points in crafting a final bill. Few details are available on the agreement over the so-called "Cadillac tax," but President Obama is expected to visit House Democrats later today to sell it, reports the Los Angeles Times. Before the deal, the legislation would have imposed a 40% tax on family plans above $23,000 and individual plans above $8,500. Unions were irate, arguing that they have long foregone raises in exchange for better benefits. The compromise likely changes the numbers so fewer union members pay the tax, which is a major source of revenue for the overall bill.