Washington (PAI) - More than 190 House Democrats have signed a letter opposing a proposed tax on union healthcare plans. One of them, Rep. Joe Courtney (D-Conn.), who authored the letter, told PAI such a tax could cost Democrats several seats in the House in next fall's elections.

"There have been private polls among members that have raised eyebrows" about the tax's impact on their election prospects, Courtney said. "This is a pretty challenging issue for candidates to defend. It has great political risk."

Under the Senate-passed version of health care revision, a 40 percent excise tax would be imposed on the value of health insurance worth aboce minimums of $8,500 for an individual and $23,000 for a family.

That's one of the key provisions in the Senate's bill that organized labor strongly opposes. AFL-CIO President Richard L. Trumka has that taxing workers' health care could be a deal-breaker for labor.

It's also a potential deal-breaker for the Democrats, Courtney says. "I don't see any weakening of our rank-and-file members about this (tax) issue," he said.

Senate sponsors contend the health benefits tax would help slow rising health care costs, while paying for almost-universal health care. But Courtney and former Clinton Labor Secretary Robert Reich, who both spoke in a Jan. 6 telephone press conference about studies critical of the tax, dispute that notion.

Reich said a better, fairer way to pay for health care is a surtax on the wealthy - and that it would also address the widening and troubling gap between the rich and the rest of us. The House-passed health care bill has a surtax on the rich. Labor prefers the House bill.

"Choosing the Senate plan" of taxing workers' health insurance "over the House plan" of taxing the rich "could be another indication of insensitivity to this growing gap" between the rich and everyone else, Reich said. At a time where the top 1 percent of the country takes home 23 percent of the income, it makes more sense to tax the top 1 percent."

Health care negotiations between the House and Senate began last week.

Democratic leaders have given up on inviting Republicans to join the talks because Republicans have consistently voted unanimously against the health care bills.

"Republicans have made it clear that they are against health insurance reform," Trumka said.

Labor's outside pressure can still influence the final outcome, union leaders believe.

Trumka says, "This is not the bill we would have written but it still is a monumental achievement."