At Work

Bills introduced to repeal Cadillac tax

A bill to repeal the 40 percent excise tax on “high-cost” plans, enacted as part of the Affordable Care Act (ACA), was introduced by Senator Dean Heller (R-NV) on September 17. Among the original cosponsors of the Middle Class Health Benefits Tax Repeal Act is Sen. Martin Heinrich (D-NM), making the effort bipartisan, matching a parallel effort in the U.S. House of Representatives.
This is the third piece legislation introduced to repeal this 40% tax. There is growing support to repeal this provision of Obamacare which, while intended to raise revenue, and on the theory that good benefits lead to bad consumers, is resulting in benefit cuts and cost-shifting to workers. 


1 reply »

  1. How do they propose to replace the revenue that the Cadillac Tax was designed to create – to pay for the expansion of taxpayer subsidized coverage in the public exchange, and the expansion in Medicaid? Where are the hundreds of billions (over ten years) to come from?

    When I went to look up S.2045 on Thomas, the official website for Congress and proposed legislation – it states: “As of 09/18/2015 text has not been received for S.2045 – A bill to amend the Internal Revenue Code of 1986 to repeal the excise tax on high cost employer-sponsored health coverage.”

    So, as always, the devil is in the details, and my bet is that since the bill has bipartisan support, there is NO proposed replacement of the lost taxpayer revenue – that is, no one has been singled out to raise this money. As a result, it is the general taxpaying public who will shoulder this tax increase, or, if taxpayer revenues are not sufficient, it will simply be added to the deficit, and in turn, the national debt – and be foisted on our children, grandchildren and Americans as yet unborn.

    Baloney. Just more vote buying – particularly targeted at non-Medicare-eligible retirees, represented employees and public employees – those who have the most lucrative and/or expensive health coverage.

    Note that a couple of the cosponsors are individuals who voted in favor of the Patient Protection and Affordable Care Act of 2010 – why won’t those same people vote in favor of repeal? We know why. They are ashamed to admit their mistakes. They want to buy votes with dollars from taxpayers yet unborn. This completes the lies President Obama told – (paraphrased) ‘… health reform won’t add one thin dime to the deficit and national debt…” because, he knows, they all know, that by frontloading the benefits and positives and backloading the costs, they all know that when it is time to pay the bill … they would all prefer to cheat future generations…


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