Kelly, Courtney Bill to Repeal Obamacare’s Cadillac Tax Passes House of Representatives

Jul 17, 2019 Issues: Health Care, Tax Reform

Washington, D.C. – Today, the House of Representatives passed H.R. 748, the Middle Class Health Benefits Tax Repeal Act of 2019 on a bipartisan vote of 419-6. If enacted, the bill would repeal the excise tax on high cost employer-sponsored health insurance plans, more commonly known as the “Cadillac Tax.” Representative Mike Kelly, R-Pa., who authored the legislation with Representative Joe Courtney, D-Conn., issued the following statement after the vote:

Today, we acted to fully repeal the Cadillac Tax, a provision of Obamacare that never made sense for the American people. This tax has nothing to do with fancy cars or extravagant health plans — it has everything to do with punishing hardworking Americans and their families. What we did today is a crucial step toward protecting employer-sponsored health insurance for all Americans.

Background:

The Cadillac tax, enacted as part of Obamacare, is a 40 percent excise tax on employer-provided health insurance plans exceeding $10,200 in premiums per year for individuals and $27,500 for families that was originally scheduled to take effect in 2018. Since then, Congress has voted to delay its implementation multiple times, and it is currently scheduled to take effect in 2022. Approximately 42% of American employers and their employees will be negatively affected if this tax is not repealed.

#####