- As the idea of repealing the Cadillac tax gains momentum among both Republicans and Democrats, voices are also rising in support of keeping the 40% excise tax on high-cost employer health plans, slated to take effect in 2018.
- A group of 101 economists and health policy experts sent a letter last week to Congress outlining the reasons why they say legislators should reject a repeal of the tax.
- A key issue in the debate is the lack of a solid alternative to make up the estimated $91 billion that would be lost over the next decade if the Cadillac tax is repealed, according to the Joint Committee on Taxation.
Saving the Cadillac tax is an unpopular fight, given the push for repeal has gained bipartsan support and as well as from Democratic presidential hopefuls Bernie Sanders and Hillary Clinton. However, the supporters are an influential group as well. As The Business Journals notes, they include the Brookings Institution’s Henry Aaron, the Urban Institute’s Stephen Zuckerman, former Congressional Budget Office Director Douglas Elmendorf, Affordable Care Act architect Jonathan Gruber and former Federal Reserve Vice Chair Alice Rivlin.
"We unite in urging Congress to take no action to weaken, delay or reduce the Cadillac tax until and unless it enacts an alternative tax change that would more effectively curtail cost growth," they wrote.