Printer Friendly

Move to cancel employer health insurance tax.

Momentum is building in Congress to cancel the 40% tax on what have been called "Cadillac" health plans. Starting in 2018, the Affordable Care Act imposes a 40% nondeductible tax on employer-sponsored coverage that exceeds certain thresholds: $10,200 for employee-only and $27,500 for family coverage. The revenue from that tax was built into Obamacare to help pay for the subsidies given to those buying health plans in the marketplaces. Sens. Dean Heller (R.-Nev.) and Sherrod Brown (D.-Ohio) have introduced separate bills, S. 2045 and S. 2075, respectively, to cancel the tax.

The bills are distinguished primarily by a "Sense of the Senate" provision in the Brown bill that supports making elimination of the tax "revenue neutral." That would mean the lost revenue would have to be made up in some fashion.

Republicans are unlikely to support making up the revenue because it would be viewed as keeping Obamacare alive, which they oppose. But Republicans would need at least six Democratic votes in the Senate to override a certain Obama veto of the Heller bill. There are bipartisan House bills, as well.

COPYRIGHT 2016 Institute of Management Accountants
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2016 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:ON THE HILL
Author:Barlas, Stephen
Publication:Strategic Finance
Article Type:Brief article
Geographic Code:1USA
Date:Jan 1, 2016
Words:185
Previous Article:Uncovering value with analytics: understanding the developing field of analytics can improve an organization's decision making.
Next Article:Red flags on audit quality: auditors' compliance with the risk assessment standards can be strengthened.
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters