Reps. Kelly & Courtney Lead Bipartisan Coalition in Urging Repeal of Cadillac Tax
Washington, DC -- Congressman Joe Courtney (D-CT-2) and Congressman Mike Kelly (R-PA-3) released a letter signed by 140 bipartisan members of the House of Representatives urging repeal of the 40% excise tax on high cost health plans, also known as the “Cadillac Tax.”
“While Congress has already delayed implementation of this excise tax until 2020, the policy is already having an impact. Large employers and labor unions are currently negotiating benefits packages that stretch into 2020, with many employers reporting that they are considering reducing the value of their health benefits to avoid this excise tax. We cannot wait to repeal it,” states the bipartisan letter.
“The 40 percent excise tax has been widely opposed by both Democrats and Republicans along with a wide coalition of business, health, and labor organizations. More than 200 members of the U.S. House of Representatives have cosponsored legislation to repeal this burdensome tax. We, therefore, urge you to address the Cadillac Tax in any health or tax-related legislation that comes before Congress for a vote this year,” the letter concludes.
"Relief is needed now on the health benefits tax,” said AFL-CIO President Richard Trumka. “Working people are paying more and more for their health care because this tax drives up deductibles and copays. Repeal of this tax is overdue."
“We are thankful for all the members of Congress working to address the ‘Cadillac Tax’ before the end of the year,” said James A. Klein, president American Benefits Council, for the Alliance to Fight the 40. “The clock is ticking and the ‘Cadillac Tax’ is already driving up costs for the 178 million Americans who receive their health care coverage through their employer. Working families cannot wait any longer for relief— let’s work together to send the ‘Cadillac Tax’ to the junkyard.”
Courtney and Kelly are the bipartisan leaders of the House effort to repeal the tax. They have introduced H.R. 173, Middle Class Health Benefits Tax Repeal Act of 2017, which currently has 208 cosponsors in the House.
Click here to see the final letter, or see the text and list of signers below.
Dear Speaker Ryan and Leader Pelosi:
As Members committed to ensuring high-quality health care benefits for working Americans, we write to request immediate action on the excise tax on certain employer-sponsored health plans included as part of the Affordable Care Act (ACA). It is our understanding that legislation being crafted to address many outstanding health care issues before the end of the year includes a number of provisions to address health-related tax policy. We strongly believe that action to repeal or delay the so-called “Cadillac Tax” should be included in this and any related package given the very real consequences of the tax already being experienced today by U.S. workers.
While Congress has already delayed implementation of this excise tax until 2020, the policy is already having an impact. Large employers and labor unions are currently negotiating benefits packages that stretch into 2020, with many employers reporting that they are considering reducing the value of their health benefits to avoid this excise tax. We cannot wait to repeal it.
While some claim that this tax was intended to hit only the most generous “Cadillac” plans, that notion is mistaken since millions of hardworking Americans and their families face a significant reduction of their benefits with an increase in their cost-sharing should as a result of this tax. In reality, the tax unfairly and disproportionately affects middle-income Americans, women, and their families. Moreover, older workers and small businesses would also be heavily impacted.
A survey by the American Health Policy Institute found that 31 percent of large employers would have a health care plan subject to the tax by the first year of implementation, and 42 percent would have a plan subject to the tax by the second year. If this tax is not repealed, the out-of-pocket costs for Americans with employer-sponsored health insurance will rise at their expense.
The 40 percent excise tax has been widely opposed by both Democrats and Republicans along with a wide coalition of business, health, and labor organizations. More than 200 members of the U.S. House of Representatives have cosponsored legislation to repeal this burdensome tax. We, therefore, urge you to address the Cadillac Tax in any health or tax-related legislation that comes before Congress for a vote this year.
Sincerely,
Joe Courtney | Mike Kelly | Vincente Gonzales |
Tom O'Halleran | Eric Swalwell | John Yarmuth |
Salud O. Carbajal | Michelle Lujan Grisham | Elizabeth H. Esty |
Kathleen M. Rice | David Scott | Barbara Comstock |
Val Demings | Pramila Jayapal | Peter T. King |
Jacky Rosen | Colleen Hanabusa | Jamie Raskin |
James P. McGovern | Julia Brownley | Matt Cartwright |
Joe Crowley | Lois Frankel | Dwight Evans |
Rod Blum | Debbie Wasserman Schultz | David Joyce |
Tim Ryan | Brendan F. Boyle | Ruben Gallego |
Paul Cook | Pete Aguilar | Bill Foster |
Luke Messer | Grace Meng | Seth Moulton |
Ed Perlmutter | Mark Pocan | Brad Schneider |
Frederica Wilson | John B. Larson | Mark Takano |
Tony Cárdenas | Raúl Grijalva | Carol Shea-Porter |
Donald Norcross | Bonnie Watson Coleman | Juan Vargas |
John Katko | Adriano Espaillat | Randy Weber |
Norma Torres | Kyrsten Sinema | Robert A. Brady |
Lou Barletta | Lucille Roybal-Allard | Jerrold Nadler |
Peter A. DeFazio | Marcy Kaptur | John J. Duncan Jr. |
Betty McCollum | Keith Ellison | Stephen F. Lynch |
Scott DesJarlais | Nydia M. Velázquez | Peter J. Visclosky |
Linda Sánchez | Walter Jones | Albio Sires |
Marcia L. Fudge | Daniel W. Lipinski | Al Green |
Nita Lowey | Richard M. Nolan | Jan Schakowsky |
Bill Pascrell Jr. | C.A. Dutch Ruppersberger | Steve Pearce |
John Garamendi | Todd Rokita | Suzan K. DelBene |
Bob Gibbs | Ted Deutch | Brian Higgins |
Eliot L. Engel | Dina Titus | Gene Green |
Suzanne Bonamici | Debbie Dingell | Rick Larsen |
Cheri Bustos | Judy Chu | Derek Kilmer |
Dave Loebsack | Rosa DeLauro | Scott Peters |
David N. Cicilline | José E. Serrano | Grace F. Napolitano |
French Hill | Daniel T. Kildee | Hank Johnson |
Bennie G. Thompson | Chellie Pingree | Don Young |
Marc Veasey | Paul D. Tonko | Eleanor Holmes Norton |
Dan Donovan | Ben Ray Luján | Earl L. “Buddy” Carter |
Kevin Cramer | Doug Lamborn | Marcy Kaptur |
David B. McKinley P.E. | Steve Cohen | Mia Love |
Paul Cook | Tulsi Gabbard | Gregory W. Meeks |
Tim Walz | Ann McLane Kuster | Leonard Lance |
Collin C. Peterson | Carolyn B. Maloney | Alan Lowenthal |
Lee Zeldin | Trent Kelly | Lou Correa |
Ruben J. Kuhuen | Maxine Waters | Robin L. Kelly |
Adam B. Schiff | Josh Gottheimer | Charlie Crist |
William R. Keating | Zoe Lofgren | Jackie Speier |
John J. Faso | Rodney Davis |
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