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PIA Says: "Ax the Cadillac Tax!"

PIA has endorsed two bills in Congress that would both fix a major flaw in the Affordable Care Act (ACA) by repealing an excise tax on certain employer-sponsored health plans.
May 14, 2015

PIA has endorsed two bills in Congress that would both fix a major flaw in the Affordable Care Act (ACA) by repealing an excise tax on certain employer-sponsored health plans. The 40 percent excise tax on so-called "overly generous" employer plans is set to take effect in 2018. Commonly referred to as the "Cadillac Tax," it will have a much broader effect than Congress intended and is likely to have a disparate impact on certain groups.

"The 'Cadillac Tax' is a ticking bomb that is set to explode in 2018 and deny health coverage to millions of middle-class Americans," said PIA National Executive Vice President & CEO Mike Becker. "It has the potential to create more market disruption than we've seen since the inception of the ACA, all to benefit government programs."

PIA has endorsed two similar pieces of legislation: the "Ax the Tax on Middle Class Americans' Health Plans Act" (H.R. 879), introduced by Congressman Frank Guinta (R-NH); and H.R. 2050, a bill to repeal the excise tax, introduced by Rep. Joe Courtney (D-CT). In addition, PIA submitted comments to the Internal Revenue Service (IRS) on May 4 seeking guidance on how the tax will be calculated and offering suggestions to help stem unintended consequences of the law.

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