Lawmakers Want To Get Rid Of ‘Cadillac Tax’ Once And For All. This Time It’s Democrats Leading The Charge Though.
The tax, which has been repeatedly delayed, would have been on the most generous and expensive employer health-insurance plans. But lawmakers are under pressure from labor unions to kill it.
Bloomberg:
Democrats Spotlight Health Care Tensions In Obamacare Tax Repeal
The House is set to repeal a tax Wednesday intended to fund the Affordable Care Act, a move that will help preserve tax breaks for private insurance favored by large corporations. And this time, it’s Democrats leading the charge. The levy, commonly known as the “Cadillac tax,” is a 40% excise tax on the most generous and expensive employer health-insurance plans. It was included in Obamacare as a measure that economists said would help curb health costs. But Congress kept delaying its implementation so the tax has never actually been collected. The levy, commonly known as the “Cadillac tax,” is a 40% excise tax on the most generous and expensive employer health-insurance plans. It was included in Obamacare as a measure that economists said would help curb health costs. But Congress kept delaying its implementation so the tax has never actually been collected. The vote to repeal the tax highlights the conflicting forces pulling at Democrats when campaigning versus legislating. (Davison, 7/17)
Modern Healthcare:
Cadillac Tax Repeal Gets House Vote This Week
For critics of the employer tax exclusion that more or less forged the U.S. insurance system, repeal of the so-called Cadillac tax would kneecap any hope to chip away at the tax break blamed for sacrificing workers' wages for health insurance benefits. The bill from Rep. Joe Courtney (D-Conn.) has 367 co-sponsors including progressive Rep. Pramila Jayapal (D-Wash.) who is spearheading the push for single payer. (Luthi, 7/16)
CQ:
Grassley: 'Cadillac' Tax Repeal Points Way To Extenders Deal
Senate Finance Chairman Charles E. Grassley sees a “little bit of progress” on the tax extenders front in House Democrats’ decision to push repeal (HR 748) of the "Cadillac" tax on high-cost health insurance plans, without offsets for the lost revenue. The House’s pay-as-you-go rules have been a hindrance for much of the year on moving legislation to extend tax breaks that expired at the end of 2017 and 2018. The most expensive of those is a provision originally authored by Grassley in 2004 (PL 108-357) to provide a $1 per gallon biodiesel blenders tax credit which costs about $3 billion a year. (Sword, 7/16)
