Improve, Don’t Repeal, ObamaCare’s Cadillac Tax

July 26, 2019

Source: Link

By Brian Blase (Original source WSJ)

“There’s one provision of ObamaCare almost everyone wants to repeal. Last week the House voted 419-6 to repeal the so-called Cadillac tax, a 40% excise on high-cost employer-sponsored health insurance. The bill now moves to the Senate.

Congress has twice delayed the tax—originally set to take effect in 2018—and weakened it by allowing employers to deduct the levy itself from their profits. But repealing the Cadillac tax is a bad idea. Instead, Congress should modify it to encourage the use of health savings accounts.

The Cadillac tax was one of roughly 20 new or expanded taxes contained in the 2010 health law. Along with provisions to reduce Medicare spending, the taxes were meant to pay for ObamaCare’s expensive subsidies and Medicaid expansion. The Congressional Budget Office estimates the Cadillac tax would apply to health-insurance plans with premiums of more than $11,200 for individuals and $30,100 for families in 2022, when it is now scheduled to take effect. The Joint Committee on Taxation projects the tax to generate $197 billion in total revenue from 2022-29. But the true policy goal of the Cadillac tax is to address the tax code’s preference for lavish plans, since premiums—both the employer and worker share—aren’t subject to federal income or payroll taxes.”

Click here to see more

Relevant and recent posts

Sanjay Gupta: Can Science and God Coexist?

Faith and science may often seem at odds with one another, but renowned geneticist and former NIH director, Dr. Francis Collins, says that he sees…

Thought Leader: Sanjay Gupta

Marc Short on what to expect from DOGE in relation to next year’s legislative agenda

Marc Short comments on what to expect from DOGE in relation to next year’s legislative agenda for CNBC. Looking for a great keynote or public…

Thought Leader: Marc Short

Marc Short on whether Musk has permanently changed how congressional communication functions

In this video, Marc Short joins CNBC to discuss whether Musk and Twitter have permanently changed how congressional communication functions and what to expect for…