Cortez Masto Cosponsors Legislation to Repeal Cadillac Tax
Washington, D.C. – U.S. Senator Catherine Cortez Masto (D-Nev.) today cosponsored the Middle Class Health Benefits Tax Repeal Act of 2019, a bill introduced by Senators Martin Heinrich (D-N.M.) and Mike Rounds (R-S.D.) to repeal a 40% excise tax on certain employer-sponsored health insurance plans known as the “Cadillac Tax.” The tax is expected to impact half of employer-based health plans by 2025.
“The rising cost of health care is one of the top concerns I hear from Nevadans. The Cadillac Tax unfairly punishes older workers, women, union and working families whose health insurance is provided by their employers. During my campaign, I made a promise to fight to repeal the Cadillac Tax, and it’s time the Senate votes to secure the health and financial security of workers in Nevada and across the nation.”
The Middle Class Health Benefits Tax Repeal Act 2019 also cosponsored by U.S. Senators Jeanne Shaheen (D-N.H.), Roger Wicker (R-Miss.), Rob Portman (R-Ohio), Dan Sullivan (R-Alaska), Lisa Murkowski (R-Alaska), Cory Gardner (R-Colo.), John Boozman (R-Ark.), Maggie Hassan (D-N.H.), Tammy Duckworth (D-Ill.), Debbie Stabenow (D-Mich.), Tim Scott (R-S.C.), Gary Peters (D-Mich.), James Inhofe (R-Okla.), Joni Ernst (R-Iowa), Chris Murphy (D-Conn.), Bob Casey (D-Pa.), Richard Blumenthal (D-Conn.), Todd Young (R-Ind.), Deb Fischer (R-Neb.), Kamala Harris (D-Calif.), and Sherrod Brown (D-Ohio). U.S. Representatives Joe Courtney (D-Conn.) and Mike Kelly (R-Penn.) introduced companion legislation in the House of Representatives.
The Middle Class Health Benefits Tax Repeal Act of 2019 amends the Internal Revenue Code of 1986 to repeal the 40% excise tax on high cost employer-sponsored health coverage, commonly referred to as the “Cadillac Tax.” The Cadillac Tax, set to take effect in 2022, will impact both employers and families whose health insurance plans cost more than $10,200 for an individual and $27,500 for family coverage. The tax takes effect once a plan’s total cost exceeds this threshold, which is indexed for inflation. The tax is imposed on insurers and self-insured group health plans, both of whom say they will pass the cost along to consumers.
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