Mobile Menu - OpenMobile Menu - Closed
Twitter icon
Facebook icon
YouTube icon
RSS icon
Instagram

Congressman Joe Courtney

Representing the 2nd District of Connecticut

Courtney, Kelly lead bipartisan coalition in urging repeal of “Cadillac Tax”

November 28, 2017
Press Release

Washington, DC -- Congressman Joe Courtney (D-CT-2) and Congressman Mike Kelly (R-PA-3) released a letter signed by 140 bipartisan members of the House of Representatives urging repeal of the 40% excise tax on high cost health plans, also known as the “Cadillac Tax.”

“While Congress has already delayed implementation of this excise tax until 2020, the policy is already having an impact. Large employers and labor unions are currently negotiating benefits packages that stretch into 2020, with many employers reporting that they are considering reducing the value of their health benefits to avoid this excise tax. We cannot wait to repeal it,” states the bipartisan letter.

“The 40 percent excise tax has been widely opposed by both Democrats and Republicans along with a wide coalition of business, health, and labor organizations. More than 200 members of the U.S. House of Representatives have cosponsored legislation to repeal this burdensome tax. We, therefore, urge you to address the Cadillac Tax in any health or tax-related legislation that comes before Congress for a vote this year,” the letter concludes.

"Relief is needed now on the health benefits tax,” said AFL-CIO President Richard Trumka. “Working people are paying more and more for their health care because this tax drives up deductibles and copays. Repeal of this tax is overdue."

“We are thankful for all the members of Congress working to address the ‘Cadillac Tax’ before the end of the year,” said James A. Klein, president American Benefits Council, for the Alliance to Fight the 40. “The clock is ticking and the ‘Cadillac Tax’ is already driving up costs for the 178 million Americans who receive their health care coverage through their employer. Working families cannot wait any longer for relief— let’s work together to send the ‘Cadillac Tax’ to the junkyard.”

Courtney and Kelly are the bipartisan leaders of the House effort to repeal the tax. They have introduced H.R. 173, Middle Class Health Benefits Tax Repeal Act of 2017, which currently has 208 cosponsors in the House.

Click here to see the final letter, or see the text and list of signers below.

Dear Speaker Ryan and Leader Pelosi:

As Members committed to ensuring high-quality health care benefits for working Americans, we write to request immediate action on the excise tax on certain employer-sponsored health plans included as part of the Affordable Care Act (ACA). It is our understanding that legislation being crafted to address many outstanding health care issues before the end of the year includes a number of provisions to address health-related tax policy. We strongly believe that action to repeal or delay the so-called “Cadillac Tax” should be included in this and any related package given the very real consequences of the tax already being experienced today by U.S. workers.

While Congress has already delayed implementation of this excise tax until 2020, the policy is already having an impact. Large employers and labor unions are currently negotiating benefits packages that stretch into 2020, with many employers reporting that they are considering reducing the value of their health benefits to avoid this excise tax. We cannot wait to repeal it.

While some claim that this tax was intended to hit only the most generous “Cadillac” plans, that notion is mistaken since millions of hardworking Americans and their families face a significant reduction of their benefits with an increase in their cost-sharing should as a result of this tax. In reality, the tax unfairly and disproportionately affects middle-income Americans, women, and their families. Moreover, older workers and small businesses would also be heavily impacted.

A survey by the American Health Policy Institute found that 31 percent of large employers would have a health care plan subject to the tax by the first year of implementation, and 42 percent would have a plan subject to the tax by the second year. If this tax is not repealed, the out-of-pocket costs for Americans with employer-sponsored health insurance will rise at their expense.

The 40 percent excise tax has been widely opposed by both Democrats and Republicans along with a wide coalition of business, health, and labor organizations. More than 200 members of the U.S. House of Representatives have cosponsored legislation to repeal this burdensome tax. We, therefore, urge you to address the Cadillac Tax in any health or tax-related legislation that comes before Congress for a vote this year.

Sincerely,

Joe Courtney

Mike Kelly

Vincente Gonzales

Tom O'Halleran

Eric Swalwell

John Yarmuth

Salud O. Carbajal

Michelle Lujan Grisham

Elizabeth H. Esty

Kathleen M. Rice

David Scott

Barbara Comstock

Val Demings

Pramila Jayapal

Peter T. King

Jacky Rosen

Colleen Hanabusa

Jamie Raskin

James P. McGovern

Julia Brownley

Matt Cartwright

Joe Crowley

Lois Frankel

Dwight Evans

Rod Blum

Debbie Wasserman Schultz

David Joyce

Tim Ryan

Brendan F. Boyle

Ruben Gallego

Paul Cook

Pete Aguilar

Bill Foster

Luke Messer

Grace Meng

Seth Moulton

Ed Perlmutter

Mark  Pocan

Brad Schneider

Frederica Wilson

John B. Larson

Mark Takano

Tony Cárdenas

Raúl Grijalva

Carol Shea-Porter

Donald Norcross

Bonnie Watson Coleman

Juan Vargas

John Katko

Adriano Espaillat

Randy Weber

Norma Torres

Kyrsten Sinema

Robert A. Brady

Lou Barletta

Lucille Roybal-Allard

Jerrold Nadler

Peter A. DeFazio

Marcy Kaptur

John J. Duncan Jr.

Betty McCollum

Keith Ellison

Stephen F. Lynch

Scott DesJarlais

Nydia M. Velázquez

Peter J. Visclosky

Linda Sánchez

Walter Jones

Albio Sires

Marcia L. Fudge

Daniel W. Lipinski

Al Green

Nita Lowey

Richard M. Nolan

Jan Schakowsky

Bill Pascrell Jr.

C.A. Dutch Ruppersberger

Steve Pearce

John Garamendi

Todd Rokita

Suzan K. DelBene

Bob Gibbs

Ted Deutch

Brian Higgins

Eliot L. Engel

Dina Titus

Gene Green

Suzanne Bonamici

Debbie Dingell

Rick Larsen

Cheri Bustos

Judy Chu

Derek Kilmer

Dave Loebsack

Rosa DeLauro

Scott Peters

David N. Cicilline

José E. Serrano

Grace F. Napolitano

French Hill

Daniel T. Kildee

Hank Johnson

Bennie G. Thompson

Chellie Pingree

Don Young

Marc Veasey

Paul D. Tonko

Eleanor Holmes Norton

Dan Donovan

Ben Ray Luján

Earl L. “Buddy” Carter

Kevin Cramer

Doug Lamborn

Marcy Kaptur

David B. McKinley P.E.

Steve Cohen

Mia Love

Paul Cook

Tulsi Gabbard

Gregory W. Meeks

Tim Walz

Ann McLane Kuster

Leonard Lance

Collin C. Peterson

Carolyn B. Maloney

Alan Lowenthal

Lee Zeldin

Trent Kelly

Lou Correa

Ruben J. Kuhuen

Maxine Waters

Robin L. Kelly

Adam B. Schiff

Josh Gottheimer

Charlie Crist

William R. Keating

Zoe Lofgren

Jackie Speier

John J. Faso

Rodney Davis

 

 

###

Issues: