Over the last few years, workers have already faced reduced benefits, higher deductibles and increased co-pays as a result of the looming "Cadillac Tax." Proposals to "cap the exclusion," would, for the first time, directly tax workers on the health benefits they receive from employers by treating the cost of those benefits as taxable wages. A recent nationwide poll found that large majorities of voters would reject proposals to tax employer-based health insurance. The American Health Policy Institute estimated that capping the tax exclusion at the 90th percentile of the value of employer plans would cost 11.4 million employees an average $636 in higher payroll and income taxes per year from 2018 to 2026.
"For decades, employers have been on the cutting edge of innovation, to improve health quality outcomes, while mitigating costs. This is essential to ensure a more productive workforce, secure families, and a healthy nation. In its efforts to reform health care, Congress should not harm the largest and most stable source of coverage for American families," Klein said. "We speak for millions of employers and employees when we work to repeal the 'Cadillac Tax,' when we oppose a cap on the exclusion, and when we implore Congress and the Trump Administration: Don't tax my health care."
The Alliance to Fight the 40 | Don't Tax My Health Care is a broad-based coalition comprised of businesses, patient advocates, employer organizations, unions, local governments, health care companies, consumer groups and other stakeholders that support employer-sponsored health coverage. This coverage is the backbone of our health care system and protects over 177 million Americans. The Alliance seeks to repeal the 40% "Cadillac Tax" on health benefits and work with Congress and the Administration to prevent increased income taxes on workers, families and retirees who rely on employer-sponsored health coverage. The Alliance is committed to ensuring that employer-sponsored coverage remains an effective and affordable option for working Americans and their families.
Contact: Tara Bradshaw
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SOURCE Alliance to Fight the 40