Congress
Passes Two Year “Cadillac Tax” Delay
Washington, D.C. – Today, the Congress passed a two-year delay of the “Cadillac Tax,”
which was included in the Omnibus spending package. The Senate Omnibus package
was approved by a vote of 65 to 33. The House of Representatives approved the
package by a vote of 316 to 113. The legislation is currently
awaiting Presidential signature.
“We applaud Congress for passing a two-year delay of the ‘Cadillac
Tax’ and thank the Congressional champions who made this possible. The
delay provides a much-needed down payment toward the ultimate goal of full
repeal,” said James A. Klein, President of the American
Benefits Council.
“The breadth of concern about the tax
is evidenced in the composition of our growing coalition – patient advocates,
private sector and public sector employers, unions and non-profit groups.
We are united in support of defending the health coverage that protects over
175 million Americans,” said Klein.
“Congress has done the right thing
to delay a 40 percent tax that would make employer-sponsored health insurance
more difficult for workers to afford and threaten patient access to potentially
lifesaving care,” said Chris Hansen, president of the American Cancer Society Cancer Action
Network (ACS CAN).
“The cost of medical care is what truly drives
health insurance premiums and the Cadillac tax does very little to rein in
healthcare costs. For many small employers, health insurance is more expensive
than ever,” said Janet Trautwein, CEO of the National Association of Health.
Underwriters. “Delaying and hopefully
repealing the Cadillac tax will make health insurance more affordable, and
encourage more employers to retain coverage for their workers.”
“We are pleased that Congress has
taken a solid first step to protect the wages and benefits of millions of hard
working Americans,” said D. Taylor, President of UNITEHERE. “Our union is proud to engage this
fight and will continue to do so.”
“Consistent
analysis has shown that the ‘Cadillac Tax’ disproportionately harms dependent
coverage for children, and we’re pleased to see there was broad, bipartisan
support in Congress to delay the tax,” said Bruce Lesley, President of First Focus,
a national children’s advocacy organization. “This is a win for families.”
“NTCA–The
Rural Broadband Association is pleased that Congress voted in support of the a
two-year delay of the 40% tax on employee health benefits as part of the 2016
omnibus appropriations bill,” said Shirley Bloomfield, CEO of NTCA–The Rural Broadband Association. “This
provision is a step in the right direction toward a full repeal, and will be
important to help small businesses like those NTCA represents attract and
retain qualified employees in rural America.”
"We
commend our partners on Capitol Hill for recognizing that counties must
continue to offer competitive health benefits to attract and retain quality
employees," said National Association of Counties President
Sallie Clark. "A two-year delay is a good start, and we will work
toward a full repeal because the excise tax on employer-sponsored health
coverage would have significant impacts on county budgets and taxpayers."
The “Cadillac Tax” is a 40% non-deductible tax on the cost of
employer-sponsored health coverage that exceeds certain benefit
thresholds.
The Alliance to
Fight the 40 is a broad based coalition comprised of public and private sector
employer organizations, consumer groups, patient advocates, employee advocates,
health care companies, businesses and other stakeholders that support
employer-sponsored health coverage. This coverage is the backbone of our health
care system and protects over 175 million Americans across the United States.
The Alliance seeks to repeal the 40% tax on employee health benefits to ensure
that employer-sponsored coverage remains an effective and affordable option for
working Americans and their families.
For more information on the 40% Tax on Health Benefits, visit
our website at www.fightthe40.com
or follow us on Twitter @Fightthe40.
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