Bill Introduced to Repeal Cadillac Tax
A bill has been introduced in the House of Representatives that would repeal the “Cadillac Tax” provision of the Affordable Care Act (codified in Internal Revenue Code Section 4980I). The Cadillac Tax provision imposes an excise tax of 40 percent on health coverage that exceeds values of $10,200 per person and $27,500 per family (to be adjusted for inflation). The Cadillac Tax remains one of the most controversial provisions of the Affordable Care Act, and it is projected to have a more expansive impact on employers and plan sponsors than was originally anticipated. The Cadillac Tax will begin to apply in 2018, but the new bill would fully repeal the tax. A copy of the bill will be available here once it is printed.