UBC Stands with the Alliance to Repeal the Cadillac Healthcare Tax

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245 Members of Congress Support the Repeal!

Hillary Clinton Statement On Replacing the ‘Cadillac Tax’ As Part Of Her Plan To Defend and Improve Affordable Care Act

Hillary Clinton, who has announced a series of proposals this month to defend and build upon the Affordable Care Act, released the following statement calling for the repeal of the law’s so-called “Cadillac Tax” provision:

“The Affordable Care Act is working, plain and simple. It has extended quality, affordable health insurance to millions of Americans, begun to rein in the growth of overall health care spending across the country, and provided important new protections to consumers, especially young people and anyone with a pre-existing condition. President Obama doesn't get enough credit for this historic achievement, and Republicans' obsession with repeal is dead wrong. We should be defending and strengthening the Affordable Care Act, not scrapping it.

“I have proposed new reforms to build on the progress we've made and lower out-of-pocket costs for families.  Too many Americans are struggling to meet the cost of rising deductibles and drug prices. That’s why, among other steps, I encourage Congress to repeal the so-called Cadillac Tax, which applies to some employer-based health plans, and to fully pay for the cost of repeal.

“My proposed reforms to our health care system would more than cover the cost of repealing the Cadillac Tax, while also reining in skyrocketing prescription drug costs and out-of-pocket expenses for hard-working families. As President, I will continue to fight to make our health care system more value-driven and cost-efficient, and to drive down costs for patients and families.”

  

UBC Applauds Bi-Partisan Efforts to Protect Middle Class Healthcare

U.S. Senators Dean Heller (R-NV) and Martin Heinrich (D-NM) are partnering to sponsor bipartisan legislation that would repeal a proposed 40% tax on health plans, a move that is applauded and encouraged by the United Brotherhood of Carpenters and Joiners of America.

The Senators presented on Thursday, Sept. 17 the Middle Class Health Benefits Tax Repeal Act of 2015, which would prevent what's being called the "Cadillac Tax" from taking effect in 2018. If enacted this measure would tax high-cost health insurance plans beginning in 2018. Employers would be hit with a 40% tax if their health insurance plans cost more than $10,200 a year for individuals and $27,450 a year for families.

The bill mirrors legislation introduced by U.S. Congressman Joe Courtney’s (D-CT02) House legislation (see below).

“The United Brotherhood of Carpenters thanks Senators Heller and Heinrich for getting this issue on the floor and we encourage all Senators to support this bipartisan effort,” said UBC General President Douglas J. McCarron.

“There is no doubt that this health care excise tax threatens every American worker and it must be repealed,” McCarron added. “The very thought of taxing the middle class because their medical insurance is deemed ‘a Cadillac’ is a direct assault on the quality of lives of our citizens

“The UBC congratulates Senators Heller and Heinrich for their leadership in protecting our country’s hardworking men and women from this law, and we also applaud Congress’ unified concern and attention to this issue. We urge all legislators in the House and Senate, regardless of party, to continue working together to get the Cadillac Tax repealed.”

  
  
Congressman Joe Courtney (D-Conn.) issues this op-ed: Repeal the excise tax on high-cost health plans. Rep. Courtney co-sponsored a bill to repeal the Cadillac Tax.
  
Alliance secures majority in the House to repeal the Cadillac Tax

The Alliance to Fight the 40 applauds the news that a bipartisan majority of the House of Representatives has co-sponsored legislation to repeal the 40% “Cadillac Tax” on health plans. Two separate measures to repeal the 40% tax, authored by Rep. Frank Guinta (H.R. 879) and Rep. Joe Courtney (H.R. 2050), have collectively attracted 222 House cosponsors.

"Actuaries and health care experts agree: the 40 percent excise tax will unfairly impact a broad swath of American workers and their families, degrading the quality of health insurance coverage and increasing out of pocket costs,” said Rep. Joe Courtney. “The tax undercuts the goals of affordable and accessible health care, and it is already affecting workers and employers as they plan for the next several years. With a bipartisan majority in the House already backing repeal of this tax — no small feat in Washington today — and business and labor united to fight it, I am optimistic that this important fix is gaining momentum."

“I introduced H.R. 879 — Ax the Tax on Middle Class Americans’ Health Plans Act — to repeal a harmful provision of the President’s healthcare law that will inflict a 40 percent tax on middle class Americans’ health plans,” said Rep. Frank Guinta. “I’ve heard from many municipalities in my district that this tax hike will cost in the hundreds of thousands of dollars. In the case of our state's largest city, Manchester, it will cost $6 million alone. 

“Recent studies suggest millions of middle-class American workers would see an average increase of more than $1,000 in higher payroll and income taxes per year. This legislation will protect hardworking middle-class Americans from facing this devastating tax increase, employers from reducing workers’ benefits and municipal taxpayers who — if enacted — would experience skyrocketing property taxes,” Guinta said.

“We commend Reps. Courtney and Guinta for their work to protect the employer-sponsored health plans of over 150 million Americans. We urge House leadership to move a stand-alone Cadillac Tax repeal bill as quickly as possible,” said Tom Flynn, political and legislative director for the United Brotherhood of Carpenters and Joiners of America.

The 40 percent tax applies to plans sponsored by both private sector and public sector employers, non-profit organizations and even self-employed individuals. The tax penalizes employers that have employees with greater health care needs, workforces with higher numbers of older workers and employers based in higher cost areas. The Alliance to Fight the 40 is unified in its effort to protect the coverage that over 150 million Americans like and want to keep.

A new alliance formed to repeal a tax that will attack middle-class healthcare is getting support from the United Brotherhood of Carpenters. The Alliance to Fight the 40 is a broad-based group of public and private sector employer organizations, unions, health care companies, businesses and other stakeholders that support employer-sponsored health coverage.

This type of coverage is the backbone of our health care system and protects over 150 million Americans across the United States. The Alliance seeks to repeal the 40% tax on employee health benefits to ensure that employer-sponsored coverage remains an effective and affordable option for working Americans and their families.

If left to be enacted as scheduled in 2018, it will lead to a reduction in employer-sponsored coverage and an increase in employee cost sharing. This will negatively affect tens of millions of working American families. 

“There is no doubt that this health care excise tax threatens every American worker and it must be repealed,” said UBC General President Douglas J. McCarron.

“The very thought of taxing the middle class because their medical insurance is deemed “a Cadillac” is a direct assault on the quality of lives of our citizens. The UBC proudly stands with the Alliance to Fight the 40 to protect our country’s hardworking men and women from this law.”

For more information on the 40% Tax on Health Benefits, visit fightthe40.com or follow this fight on Twitter @Fightthe40.

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