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 ‭(Hidden)‬ Catalog-Item Reuse

Big ‘I’ Pushes for ‘Cadillac’ Tax Repeal

The tax would disproportionately affect middle-income Americans, women, seniors, working families and small businesses.
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Late last week, the Big “I” joined more than 1,000 other organizations in sending a letter to Senate leaders asking them to swiftly and fully repeal the “Cadillac” tax. Just this summer, the U.S. House of Representatives voted overwhelmingly to repeal the tax 419-6 and the Big “I” continues to push the U.S. Senate to follow the House’s lead.

Starting in 2022, the tax—called for by the Affordable Care Act (ACA)—would impose a 40% tax on health benefits that exceed an established annual cost. While the “Cadillac” tax was intended to target only high-value plans, more modest plans are projected to trigger the tax due to the health care costs of the workers and families covered by the plans.

The tax would unfairly and disproportionately affect middle-income Americans, women, seniors and working families. Moreover, the tax would penalize small businesses, as they would potentially be forced to choose between paying the tax or reducing benefits for their employees. The tax would do irreparable damage to the employer-sponsored health care system for the 181 million Americans who depend on it.

The Big “I” will continue to engage with the Trump Administration and leaders in Congress to ensure this tax never sees the light of day.

Wyatt Stewart is Big “I” senior director of federal government affairs.