Congressional Support Growing to Send the “Cadillac Tax” to the Junkyard

Congressional leaders continue efforts to garner support to repeal the Affordable Care Act’s 40% “Cadillac Tax” on employer-provided health care coverage— boosting cosponsors in the House to 300 on H.R. 173, the Middle Class Health Benefits Tax Repeal Act of 2017. The Senate companion bill is S. 58.

“On behalf of the Alliance to Fight the 40, I thank Representatives Kelly and Courtney and Senators Heller and Heinrich for their bipartisan leadership to rally their colleagues behind full repeal of the so-called ‘Cadillac Tax,'” said James A. Klein, president of the American Benefits Council. “Affordable, high-quality health insurance coverage is the bedrock for healthy families, a healthy workforce, and a healthy economy. Along with our congressional champions, we will not rest until this tax is repealed.  Without repeal, out-of-pocket health costs will increase for many of the 178 million Americans covered by employer-sponsored plans.”

“I’ve said it before, and I’ll say it again, this ‘Cadillac Tax’ has nothing to do with fancy cars or extravagant health plans – it has everything to do with punishing hardworking Americans and their families,” said Rep. Mike Kelly (R-PA). “As an employer, I’m proud to offer affordable coverage to my employees to help keep them and their families healthy and happy. I think most employers feel this way. With the ‘Cadillac Tax’ already picking the pockets of American workers and disrupting the employee-employer relationship, and with overwhelmingly popular support for getting rid of it, there is simply no good reason to keep it on the books. None. I will keep pushing this ‘Cadillac’ to the junkyard—where it belongs.”

“Actuaries and health care experts have shown us that the Cadillac Tax will disproportionately affect older workers, women, and families in higher income regions resulting in greater out-of-pocket costs for these populations, said Rep. Joe Courtney (D-CT). “That is why I have been leading the fight against the Cadillac Tax for nine-years, during which time we successfully delayed its implementation at several key moments leading us to this point. Now that we have a clear majority of support in the House of Representatives, a full repeal of this burdensome tax on middle-class families may soon be at hand.”

“With more than one million workers in Nevada who have employer-sponsored health insurance, I’m proud to have helped lead the fight to safeguard the care working families rely on,” said Senator Dean Heller (R-NV). “I will continue working with my colleagues to push a bipartisan, full repeal of this heavy-handed tax so workers can continue to have access to affordable health care coverage.”

“Although delaying this excise tax is a victory for the middle class, I will continue to fight for its full repeal,” said Senator Martin Heinrich (D-NM). “I am committed to protecting health care for all New Mexicans, which is why eliminating this onerous tax on employees’ health coverage is so important. Protecting benefits for workers and ensuring that businesses and families get a fair deal will continue to be my priority.”

Last week, the Ways & Means Committee sent an important message when it approved an additional delay of the 40% Cadillac Tax. With growing bipartisan support, the Alliance to Fight the 40 | Don’t Tax My Health Care encourages the House to take up full repeal legislation quickly as they move to consider legislation to reduce health care costs for Americans. Until we achieve a full and permanent repeal of this tax, 178 million Americans will continue to be threatened by shrinking benefits and higher out-of-pocket costs and other negative results of this onerous tax.

The employer-sponsored health care system is stable, efficient, affordable, and effective in covering more than half of all Americans. Let’s work together to protect what works