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house Bill H.R. 748

Should the Obamacare ‘Cadillac Tax’ on High-Cost, Employer-Sponsored Health Insurance Plans Be Repealed?

Argument in favor

The Cadillac tax unfairly punishes businesses for offering their employees with a broad variety of health insurance plans, which is why it has been delayed multiple times by Congress. This bipartisan bill would repeal it once and for all to protect nearly half of American workers from higher premiums and deductibles.

Catherine's Opinion
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07/14/2019
Universal health care should be available for all Americans.
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Jay's Opinion
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07/17/2019
Make congress pay for private ins. Be like us.
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Joe's Opinion
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07/17/2019
I work for a small company. We have 90 or so employees. We are blessed to have our employer pay our health insurance. This is a great benefit to myself and my family. I would hate to wake up in 2022 and hear it announced that our company would have to abandon the benefit due to the tax hike. This will hurt people like me and will hurt small businesses.
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Argument opposed

The Cadillac tax may have bipartisan opposition, but it should be allowed to take effect to bring in much-needed tax revenue. Employers and unions should be discouraged from offering broader health insurance benefits to their employees.

Corinne's Opinion
···
07/14/2019
Too much of our economic system and tax system are structured to benefit the wealthy, giving them hidden subsidies. We need to have ways of providing support for all of our people, especially in the areas of health care, education, and housing. In this case, this tax is one way to generate funds to support needed services for those who are not wealthy. Until we are ready to responsibly overhaul our whole system, we will need small steps like this. Taking this tax away is just one more way to, piece-by-piece, destroy a program that has produced some significant benefits. While ACA is far from perfect, it has made a difference for many, many people. Let's continue to support it, as is, and work to make the larger system more fair and just.
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Dale's Opinion
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07/14/2019
The wealthy should be taxed more heavily, not less.
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burrkitty's Opinion
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07/17/2019
Universal single payer healthcare system NOW!
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bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
  • The house Passed July 17th, 2019
    Roll Call Vote 419 Yea / 6 Nay
      house Committees
      Committee on Ways and Means
    IntroducedJanuary 24th, 2019

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What is House Bill H.R. 748?

This bill — the Middle Class Health Benefits Tax Repeal Act of 2019 — would repeal the “Cadillac tax” which would impose a 40% excise tax on high-cost, employer-sponsored health insurance plans beginning in 2022. The Cadillac tax was enacted under the Affordable Care Act (ACA or Obamacare), and would apply to health plans valued at more than $10,200 for individuals or $27,500 for families when accounting for premium payments made by employers & employees plus contributions to a variety of health savings & spending accounts in that total.

Under current law, health benefits provided by employers are excluded from their taxes, which can incentivize employers to pay a greater share of their employees’ compensation in the form of health benefits rather than in wages. The Cadillac tax essentially creates a cap on this tax exclusion by imposing a tax on high-cost health plans offered by employers. It also is not currently indexed to inflation or healthcare costs, meaning that as health insurance plans get more expensive more people will end up paying the tax.

Impact

Employees who are enrolled in and employers who offer high-cost health insurance plans; and the federal government.

Cost of House Bill H.R. 748

A CBO cost estimate is unavailable.

More Information

In-Depth: Rep. Joe Courtney (D-CT) introduced this bill to repeal the ACA’s “Cadillac tax” on certain employer sponsored health insurance plans:

“The American people have made it clear that they want Congress to address the rising cost of healthcare. Out of pocket costs are unaffordable for growing numbers of families, even those who insurance. If the 40% excise tax goes into effect, we know this affordability crisis will dramatically worsen. Actuarial experts have repeatedly warned that this tax will disproportionately and unfairly impact older workers, women, and working families in expensive geographic areas. My legislation to repeal the 40% tax has wide and unified support from a range of stakeholders, patient groups, employers, and labor organizations. It’s my belief that the legislation will receive the same broad support in this Congress, and that we will scrap the Cadillac Tax once and for all.”

Original cosponsor Rep. Mike Kelly (R-PA) added:

“By taxing the benefits that employers generously offer their employees to help keep them healthy and financially secure, the Cadillac Tax needlessly cuts into ever-tightening family budgets while making healthcare less accessible. As we know it, the employer-sponsored healthcare system is stable, efficient, and effective in covering more than half of all Americans. Employers are on the cutting edge of innovation, leveraging new technologies and systems to reduce healthcare costs and produce better outcomes. The Cadillac Tax threatens this time-tested system as it would lead many employers to forgo investments in the healthcare solutions of tomorrow. Now is the time to fully and permanently repeal the Cadillac Tax.”

This legislation has the support of 361 bipartisan cosponsors in the House, including 199 Democrats and 162 Republicans. It also has the support of numerous unions and trade organizations.


Of Note: The Cadillac tax was originally slated to take effect in 2018, but a provision delaying it until 2020 was included in an omnibus spending bill enacted in December 2015. It was then delayed until 2022 by a continuing resolution signed in 2018. An analysis done by the Kaiser Family Foundation found that the tax will impact about 42% of American employers and their employees.

This bill is expected to be the second House bill considered in the 116th Congress under the so-called Consensus Calendar, which allows bills to get a vote under suspension of the rules within one week if they’ve attained at least 290 cosponsors.


Media:

Summary by Eric Revell

(Photo Credit: iStock.com / LPETTET)

AKA

Middle Class Health Benefits Tax Repeal Act of 2019

Official Title

To amend the Internal Revenue Code of 1986 to repeal the excise tax on high cost employer-sponsored health coverage.

    Universal health care should be available for all Americans.
    Like (75)
    Follow
    Share
    Too much of our economic system and tax system are structured to benefit the wealthy, giving them hidden subsidies. We need to have ways of providing support for all of our people, especially in the areas of health care, education, and housing. In this case, this tax is one way to generate funds to support needed services for those who are not wealthy. Until we are ready to responsibly overhaul our whole system, we will need small steps like this. Taking this tax away is just one more way to, piece-by-piece, destroy a program that has produced some significant benefits. While ACA is far from perfect, it has made a difference for many, many people. Let's continue to support it, as is, and work to make the larger system more fair and just.
    Like (63)
    Follow
    Share
    Make congress pay for private ins. Be like us.
    Like (52)
    Follow
    Share
    I work for a small company. We have 90 or so employees. We are blessed to have our employer pay our health insurance. This is a great benefit to myself and my family. I would hate to wake up in 2022 and hear it announced that our company would have to abandon the benefit due to the tax hike. This will hurt people like me and will hurt small businesses.
    Like (47)
    Follow
    Share
    The wealthy should be taxed more heavily, not less.
    Like (42)
    Follow
    Share
    Universal single payer healthcare system NOW!
    Like (36)
    Follow
    Share
    👍🏻👍🏻 The Cadillac tax Needs Repealed Sooner Rather Than Later 👍🏻👍🏻 The Cadillac tax unfairly punishes businesses for offering their employees with a broad variety of health insurance plans, which is why it has been delayed multiple times by Congress. This bipartisan bill would repeal it once and for all to protect nearly half of American workers from higher premiums and deductibles. SneakyPete..... 👍🏻👍🏻👍🏻👍🏻. 7.17.19.....
    Like (19)
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    All of Obamacare should be repealed.
    Like (16)
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    Affordable care act is not affordable and never will be as long as government and insurance companies are involved, doctors and nurses provide health care, cut out the middle man and go straight to the source .
    Like (16)
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    Congress should not be able to exempt themselves from Obamacare, they should be held to the same standards as the rest of the US citizens.
    Like (13)
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    Leave the ACA alone
    Like (12)
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    I oppose anymore ACA TAXES! Repeal obummer care!
    Like (10)
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    Government should stay out of healthcare! We don’t want Socialism! Everyone should have to pay something!. Insurance should not cover 26 year old , they should be on there own and get their own Healy!
    Like (10)
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    OBAMACARE BELONGS in the trash can! Restore the healthcare system to the fee market. Our Constitution give no right for Government to control healthcare!
    Like (10)
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    Over a period of time (10 to 20 years), we need to phase out for profit insurance plans and funnel that money directly into our health system. This tax is a step in that direction.
    Like (9)
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    No and provide for the general welfare by fully funding Medicare for all. Paul Gosar do you ever vote your conscious or whatever the party line is?
    Like (9)
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    Absolutely. Common sense.
    Like (8)
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    Yes, let’s give Obama care a chance. It’s been messed with from the moment it was conceived.
    Like (8)
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    Yes. Because health insurance is un-ethical. Outlaw health insurance. John Katko voted to repeal the tax on his Cadillac health insurance plan that we pay for with our income taxes. Let him pay for his own insurance.
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    Need more info
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