Task 2.3.3 of 5
Union contracts: savings are added to the bargaining table as wages or pensions; reopener clauses triggered by law.
Who does it
Unions / employers
When
Each wave
Trade-off
Reopening union contracts preserves bargaining but invites disputes over how savings are split.
Part of: Enforce maintenance of compensation
Employers that paid health premiums must convert their savings into wages or other compensation. In steady state employers paid $1.05T in premiums (private, federal, state & local) and owe $873.4B in the new tax; 85% of the difference is assumed to reach paychecks.
This step changes 1 existing laws, programs, or institutions. See the list.