A long overdue action may finally be taken by the U.S. Congress as H.R.748 (Middle Class Health Benefits Tax Repeal Act of 2019) is scheduled to be brought up for a House vote to repeal what is known as the “Cadillac Tax.”
The Cadillac Tax is a provision of the Affordable Care Act which, starting in 2022, would impose a 40 percent excise tax on employer-sponsored health benefits whose value exceeds legally specified thresholds. If implemented, the burden of the Cadillac Tax would likely be passed on to workers through higher deductibles, costs, and restricted benefits. Congress has delayed actual implementation of the Cadillac Tax several times however, many groups including insurance companies, labor unions, employers, and professional associations including SHRM have long lobbied for a permanent solution by repealing rather than delaying implementation of the Cadillac Tax.
With bi-partisan support of the repeal bill that includes over 360 co-sponsors, it appears that this may finally be a prime opportunity for the bill to pass the House to then head to the Senate for consideration. Although passage in the House seems likely, it is still important for SHRM Advocacy Team members to reach out to their individual House members to ask for their support in voting for repeal of the Cadillac Tax. Passage of this repeal bill would put this issue to rest and allow insurers and employers to move forward with future benefit planning without having to plan and budget for an anticipated tax increase.
I encourage my fellow SHRM Advocacy Team members and other interested human resources professionals, not only in my state of Wisconsin, but across the country to contact their representative in Congress to voice their support and ask their representative to co-sponsor and/or vote in favor of H.R.748 to finally repeal the Cadillac Tax. Personally, after monitoring this tax since the first delay went into effect in December of 2015, I am happy to reach out and thank my congressman, Representative Bryan Steil for his co-sponsorship and ask him to vote “yes” to help the employers and employees in Wisconsin’s 1st Congressional District as well as across the U.S.
Visit the SHRM Policy Action Center to find your elected official.
Jeffery C. Palkowski, MHRM, SHRM-CP, PHR
Director of Government Affairs – Wisconsin SHRM State Council
SHRM Advocacy Captain (Wisconsin 1st CD)