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Repeal or Delay of “Cadillac Tax” Still Alive

As Congress rushes to finish work prior to the holidays, the effort to repeal or delay implementation of the Affordable Care Act’s...
December 16, 2015

As Congress rushes to finish work prior to the holidays, the effort to repeal or delay implementation of the Affordable Care Act’s (ACA’s) “Cadillac Tax” is still alive. The Senate has already voted 90-10 to repeal the 40% levy on employer benefit plans whose value exceeds a government-set threshold. The vote was on an amendment on a bill that is expected to be vetoed by President Obama. But the margin was an indication of broad support for the repeal. In the House, more than 290 lawmakers—a number large enough to override a presidential veto—supported legislation to repeal the tax. The latest strategy is to place a two-year delay in the tax into a year-end bill of tax break extenders Congress is negotiating with the Obama administration.

Repeal or delay of the Cadillac Tax is being aided by support from some congressional Democrats. One of them, Rep. Joe Courtney (D-Conn.) writes in an article in this month’s PIA Connection that the time has come to ax the tax. “Why?” asks Courtney. “Because respected independent actuaries (Towers Watson, AON, Milliman) have all concluded that the tax will not just nip at the health plans of the super-rich, but will harm the coverage of millions of middle-class ‘Ford Focus’ health plans. “As professional insurance agents, you well know the likely repercussions on your clients of this provision.” Follow #DontTaxMyBenefits and @repjoecourtney on Twitter for the latest social media updates on Cadillac Tax happenings.

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