Implementation of the Obamacare so-called Cadillac tax on the value of health plans has not gone away, it has just been delayed until 2020. This hasn’t stopped employers from lowering the value of their plans now in anticipation of the tax which no employer in its right mind will pay (government plans the likely exception).
The tax is supposed to provide the government with income to offset the cost of Obamacare in several ways, the tax itself, lower health benefit tax deductions for employers and higher income taxes from workers on the absurd theory that as employers reduce benefits to avoid the tax wages will be increased.
If the tax is ever implemented, one thing is clear. It is a tax and a burden aimed directly at the middle-class; at every worker who ends up with lower health coverage, higher out of pocket costs and NO higher wages to offset either. Even in the unlikely event of higher offsetting pay, the worker will get to pay income and payroll taxes on that income.
The above results tend to reinforce my naive theory for the politic left. Only 52% of Democrats agree with the first statement when, for several years, employers have actually been reducing health benefits and have not been raising wages to offset the loss.
Of course, we must ask the question, if the tax is repealed, where does the assumed revenue of $71 billion come from?