Bipartisan Bill to Repeal Excise Tax On Middle-Class Health Benefits Introduced in Senate
This week, U.S. Senators Martin Heinrich, D-N.M., and Mike Rounds, R-S.D., introduced bipartisan legislation to repeal a provision in the Affordable Care Act known as the “Cadillac Tax,” which taxes high-cost health insurance plans and impacts middle-class health benefits.
In the 115th Congress, more than 300 members of Congress from both parties cosponsored legislation to repeal the 40 percent tax. Although the tax was originally a provision in the Affordable Care Act, implementation has been delayed numerous times by bipartisan coalitions in Congress, most recently to 2022.
Beginning in 2022, the “Cadillac Tax” would impact employers and families whose health insurance plans cost more than $11,100 for an individual, and $29,750 for family coverage.
“Eliminating this onerous tax on employees’ health coverage will protect important benefits for workers and ensure that businesses and families get a fair deal,” Senator Heinrich said. “I’m proud to join Senator Rounds in leading this bipartisan effort to ensure millions of middle-class families who rely on employer-based health care aren’t unfairly penalized by this tax.”
“The bill we introduced today is a step toward repealing another negative provision of the Affordable Care Act: the Cadillac Tax,” Senator Rounds said. “If implemented, the Cadillac Tax would impose a 40 percent tax on certain employer-sponsored health care plans. This would dramatically increase the costs of healthcare for South Dakota families. The Cadillac Tax is currently scheduled to go into effect in 2022, and unless we’re able to repeal it, millions of middle-class families across the country will be impacted. I look forward to working with the administration and my colleagues in Congress to advance this bipartisan legislation to fully repeal the Cadillac Tax.”
The Middle Class Health Benefits Tax Repeal Act 2019, led by Heinrich and Rounds, is cosponsored by U.S. Senators Jeanne Shaheen, D-N.H.,, Roger Wicker, R-Miss., Rob Portman, R-Ohio, Dan Sullivan, R-Alaska, Lisa Murkowski, R-Alaska, Cory Gardner, R-Colo., John Boozman, R-Ark., Maggie Hassan, D-N.H.,, Tammy Duckworth,D-Ill., Debbie Stabenow, D-Mich., Tim Scott, R-S.C., Gary Peters, D-Mich., James Inhofe, R-Okla., Joni Ernst, R-Iowa, Chris Murphy, D-Conn., Catherine Cortez Masto, D-Nev., Bob Casey, D-Penn., Richard Blumenthal, D-Conn., Todd Young, R-Ind., Deb Fischer, R-Neb., Kamala Harris, D-Calif., and Sherrod Brown, D-Ohio.
U.S. Representatives Joe Courtney, D-Conn., and Mike Kelly, R-Penn., introduced companion legislation in the House of Representatives.
A copy of the bill is available here.
In The News
WASHINGTON — President Donald Trump contradicted one of his administration’s top scientists and announced Wednesday that widespread distribution of a coronavirus vaccine would begin as early as next month, further rattling the scientific and public health communities and stoking rival Joe Biden’s claim that Trump can’t... Read More
WASHINGTON -- Congress discussed proposals Wednesday to switch the United States to 100% clean energy as Western governors confronting out-of-control wildfires demand action on global warming. A House Energy and Commerce subcommittee is trying to figure out a way to recover jobs lost during the coronavirus... Read More
NEW YORK, N.Y.- The City of New York on Monday implemented a new COVID "Response Team" to monitor the city's schools and hopefully prevent a resurgence of the coronavirus in one of the nation's hardest hit municipalities. The city's new COVID Response Situation Room is a... Read More
WASHINGTON — Speaker Nancy Pelosi on Tuesday headed a call from her members to commit to keeping the House in session until there’s a coronavirus relief deal, but the vow does little to break the stalemate in bipartisan negotiations that is at the heart of Democrats’... Read More
WASHINGTON - Today, the House of Representatives passed the Strength in Diversity Act 2020, legislation that will provide funding for voluntary desegregation initiatives across the country. The Strength in Diversity Act was brought to the House by Rep. Marcia Fudge, D-Ohio, and authored by Rep. Robert... Read More
WASHINGTON — If the United States has even a typical flu season that collides with a COVID-19 flare, the resulting public health nightmare could swamp the nation’s already strained health system. This year’s flu season could be milder than usual because of social distancing. And more... Read More