Repeal The Cadillac Tax To Protect American Workers

Edgar's picture

Dozens of lawmakers just formally took their seats in a new Congress. At the top of their legislative agenda this year should be a measure that commands bipartisan support -- repeal of the Affordable Care Act’s Cadillac Tax on high-cost health plans.

It was supposed to go into effect this year. But in 2015, President Obama and Congress agreed to push the start date to 2020. This past January, President Trump signed a bill into law putting the tax on hiatus again, until 2022.

This time around, Congress should not just delay the tax, but repeal it.

For decades, employer-sponsored health insurance has been free from income tax -- a benefit that helps organizations attract and retain talent. The Cadillac Tax changes that by limiting the amount of insurance employees can receive tax-free to $11,100 for an individual policy or $29,750 for a family plan. Any amount beyond those caps is subject to the 40 percent tax.



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