Majority Of Registered Voters Want Cadillac Tax Repealed Or Changed
According to a new poll of registered voters, 34 percent of Americans want Congress to repeal the Affordable Care Act tax on high-end insurance plans offered by employers (so-called “Cadillac” plans). Another 31 percent of registered voters said they wanted the tax changed in some way. Only 15 percent of poll respondents said they support the tax.
The “Cadillac tax” will take effect in 2018 and apply to health care plans for individual plans valued at $10,200 and higher and family plans valued at $27,500 and higher. According to a survey by National Business Group, 94 percent of U.S. businesses will be forced to pay this tax by 2026 if Congress does nothing. Higher costs for U.S. businesses will make domestic companies less competitive globally and will also negatively impact U.S. workers since, to avoid the tax, many businesses will opt to reduce the health care benefits they offer to employees or increase the overall cost of health care expenses that employees pay.
For these reasons, Republicans and Democrats have lined up in favor of getting rid of the levy. According to Politico’s “Morning Money,” Democratic presidential candidates Gov. Martin O’Malley (MD) and Sen. Bernie Sanders (VT) both came out last week in favor of repeal. MSCI strongly opposes this tax and is developing plans with its allies to oppose it.
To read more about the impact this tax will have on the employers and workers, check out this April story from Connecting the Dots.