PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Coalition Letter in Support of H.R. 748, the “Middle Class Health Benefits Tax Repeal Act of 2019”

By at 6 March, 2019, 8:53 am

Repeals “Cadillac Tax”

On March 1, SBE Council joined a coalition of over over 500 business organizations, nonprofits, chambers of commerce, insurers, brokers, unions and patient advocacy groups in support of H.R. 748, the “Middle Class Health Benefits Tax Repeal Act of 2019,” which would repeal the impending 40% tax on employer-provided health care. As noted by the letter:

Congress has acted twice to protect Americans from the consequences of the “Cadillac Tax,” but this policy is already causing an adverse effect on the affordability and quality of health coverage available to employees and their families. According to Kaiser Family Foundation 2018 data, since 2010, deductibles have risen 89%, while wage growth has remained comparatively flat.

While this tax was intended to only hit Americans with “gold-plated” plans, the reality is that very modest plans covering low- and moderate-income working families are projected to trigger the tax. The tax will disproportionately tax the health plans of women, seniors, working middle class families, the sick, and the disabled. Small businesses that already struggle to offer health care coverage will also be heavily penalized. This tax has real and harmful consequences – Americans cannot afford to pay more for their health care. Employer-provided coverage is the backbone of our health care system and the primary source of coverage for the majority of Americans.

According to 2018 mid-term election polling, 81% of voters oppose taxing employer-provided health coverage. The looming 40% “Cadillac Tax” on employer-provided health coverage

Rep. Joe Courtney (D-CT) and Rep. Mike Kelly (R-PA) are key sponsors of H.R. 748, and the legislation currently has 210 sponsors.

Read the letter here.

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