Alliance To Fight The 40 Applauds House For Exceeding 'Magic Number' To Repeal Cadillac Tax
WASHINGTON, Sept. 14, 2015 /PRNewswire-USNewswire/ -- The Alliance to Fight the 40 today applauded the news that a bipartisan majority of the House of Representatives has co-sponsored legislation to repeal the 40% "Cadillac Tax" on health plans. The Alliance to Fight the 40 is a broad-based and diverse coalition of employer and employee groups working to repeal the so-called "Cadillac Tax."
Two separate measures to repeal the 40% tax, authored by Rep. Frank Guinta (H.R. 879) and Rep. Joe Courtney (H.R. 2050), have collectively attracted 224 House cosponsors. The Affordable Care Act's (ACA) "Cadillac tax" is a 40% non-deductible tax on the cost of employer-sponsored health coverage that exceeds certain thresholds.
"Actuaries and health care experts agree — the 40 percent excise tax will unfairly impact a broad swath of American workers and their families, degrading the quality of health insurance coverage and increasing out of pocket costs," said Rep. Joe Courtney. "The tax undercuts the goals of affordable and accessible health care, and it is already affecting workers and employers as they plan for the next several years. With a bipartisan majority in the House already backing repeal of this tax — no small feat in Washington today — and business and labor united to fight it, I am optimistic that this important fix is gaining momentum."
"I introduced H.R. 879 — Ax the Tax on Middle Class Americans' Health Plans Act — to repeal a harmful provision of the President's healthcare law that will inflict a 40 percent tax on middle class Americans' health plans," said Rep. Frank Guinta. "I've heard from many municipalities in my district that this tax hike will cost in the hundreds of thousands of dollars. In the case of our state's largest city, Manchester, it will cost $6 million alone.
"Recent studies suggest millions of middle-class American workers would see an average increase of more than $1,000 in higher payroll and income taxes per year. This legislation will protect hardworking middle-class Americans from facing this devastating tax increase, employers from reducing workers' benefits and municipal taxpayers who — if enacted — would experience skyrocketing property taxes," Guinta said.
"We commend Reps. Courtney and Guinta for their work to protect the employer-sponsored health plans of over 150 million Americans. We urge House leadership to move a stand-alone Cadillac Tax repeal bill as quickly as possible," said Tom Flynn, political and legislative director for the United Brotherhood of Carpenters and Joiners of America.
"Representatives Courtney and Guinta have shown tremendous leadership in the bipartisan effort to protect employer-sponsored health plans. Counties must be able to continue to offer competitive health benefits to county employees," said National Association of Counties President Sallie Clark. "Not only would the excise tax hinder our efforts to attract and retain quality employees, but it would also have significant impacts on county budgets and place additional burdens on taxpayers."
The 40 percent tax applies to plans sponsored by both private sector and public sector employers, non-profit organizations and even self-employed individuals. The tax penalizes employers that have employees with greater health care needs, workforces with higher numbers of older workers and employers based in higher cost areas. The Alliance to Fight the 40 is unified in its effort to protect the coverage that over 150 million Americans like and want to keep.
"The 40% tax on health benefits is already influencing the coverage of millions of middle class Americans, as employers are reluctantly forced to take action to avoid the tax by raising deductibles and imposing more cost-sharing" said Katy Spangler, senior vice president, health Policy, for the American Benefits Council. "Congress must act now to repeal the tax."
About the Alliance to Fight the 40: Stop the 40% Tax on Health Benefits
The Alliance to Fight the 40 is a broad based coalition comprised of public and private sector employer organizations, unions, 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 150 million Americans across the United States. The Alliance seeks to repeal the 40 percent 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 Percent Tax on Health Benefits, visit our website at fightthe40.com or follow us on Twitter @Fightthe40.
Contact: Tara Bradshaw (202) 467-4306
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SOURCE Alliance to Fight the 40
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