US Rep Guinta introduces bill to protect middle class workers from 40% tax increase on health benefits
WASHINGTON. D.C. – Today, Congressman Guinta 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, known as a ‘Cadillac tax,’ which will inflict a 40% tax on middle class Americans’ health plans. The Cadillac tax will officially go into effect in 2018; however, employers, labor unions, and municipalities are anticipating this massive tax by looking at increasing deductibles, reducing benefits and shifting costs to consumers and property tax payers alike.
“I’ve heard from countless municipalities back home who are absolutely terrified of this unavoidable and impending tax hike. Even worse, the non-partisan think tank American Health Policy Institute found that over 12 million middle-class American workers would see an average increase of $1,050 in higher payroll and income taxes per year. My legislation will protect workers from facing this devastating tax increase, employers from reducing workers’ benefits and municipal taxpayers who – if enacted – would experience skyrocketing property taxes. The repeal of this onerous tax has received widespread support from republicans, democrats, national unions and more.”
The Ax the Tax on Middle Class Americans’ Health Plans Act is the first piece of stand-alone legislation to repeal the Cadillac Tax in the House of Representatives.
To read the text of Ax the Tax on Middle Class Americans’ Health Plans Act, please click here.