Wednesday, July 20, 2016

More than 300 House Members Sign on to Repeal “Cadillac Tax”


For Immediate Release

July 14, 2016



 

More than 300 House Members Sign on to Repeal “Cadillac Tax”

 

Washington, D.C. – The Alliance to Fight the 40 today announced that Congressional support for repeal of the “Cadillac Tax” exceeded 300 members of the House of Representatives who have signed on to legislation to fully repeal the tax. The number of cosponsors signifies that nearly 70% of members in the House support the effort to repeal the “Cadillac Tax.”

 

“The growing number of cosponsors reflects the work of the Alliance members in their efforts to reach out to Congress to highlight the devastating effects of the ‘Cadillac Tax’ on the health coverage of working Americans,” said James A. Klein, President of the American Benefits Council. “We applaud the newest cosponsors for joining more than 300 of their colleagues to take a stand against the ‘Cadillac Tax.’  It further illustrates the overwhelming support to repeal this onerous tax.”

 

“This tax does not just affect high value plans. It will hit workers, retirees and families with ordinary coverage who have the misfortune to suffer catastrophic health events or have chronic conditions that are expensive to treat,” continued Klein. “We thank all the House members who recognize the harmful effects of this tax and are working to protect the benefits of 175 million workers.”

 

“Middle-class families depend on employer health benefits, a crucial supplement to mom and dad’s salaries, to make ends meet,” said Congressman Frank Guinta (R-NH). A 40-percent tax on their insurance plans would be devastating to Granite Staters’ household finances, not to mention physical wellbeing. Three hundred cosponsors of legislation to permanently ax the tax is a milestone. I’m proud to have introduced the first standalone bill. One way or another, the ‘Cadillac Tax’ will meet its end.”

 

“This is one more important mile-stone on the path to an ultimate repeal of the ‘Cadillac Tax’,” said Congressman Joe Courtney (D-CT). “Passage of a two-year delay last December was an important development, but we need a permanent repeal of the 40% excise tax on health plans in order to ensure that middle-class health benefits are protected. I look forward to continuing to work with my colleagues in Congress, the Administration, and those outside experts in the future to get this over the finish line.”

 

The “Cadillac Tax” is a 40% tax on the cost of employer-sponsored health coverage that exceeds certain benefit thresholds – initially, $10,800 for self-only coverage and $29,100 for family coverage in 2020.  More than just premiums are counted when determining the “cost” of the plan.  The cost of wellness programs, on-site clinics and other plan features designed to reduce plan expenses are also included, so that ultimately virtually everyone in an employer-sponsored plan will be affected. 

 

The two bills in the House are H.R. 879 introduced by Rep. Frank Guinta (R-NH) and H.R. 2050 introduced by Rep. Joe Courtney (D-CT). There are 18 members of Congress who have signed on to both bills. Last year 90 members of the U.S. Senate voted to permanently repeal the tax.  

 

The Alliance to Fight the 40 is a broad-based coalition comprised of public and private sector employer organizations, patient advocates, businesses, unions, 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.

 

Website:  www.fightthe40.com  & Twitter: @Fightthe40

 

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