From PA Chamber of Business & Industry
Last week, the U.S. House of Representatives voted in an overwhelming 419-6 vote in favor of the Middle Class Health Benefits Tax Repeal Act of 2019. Supported by the PA Chamber and a broad-based nationwide coalition, the bipartisan legislation aims to repeal an impending 40 percent tax on employer-provided health care. Dubbed the “Cadillac Tax,” this component of the Affordable Care Act has been delayed by Congress twice; however, the policy has contributed to deductibles increasing 89 percent while wage growth has remained comparatively flat.
In early June, the PA Chamber was among the signatories on a letter to Congress urging support for the bill, largely due to its impact on the nation’s middle class population. “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 national coalition of business, chamber and insurance groups wrote.
The legislation, HR 748, now awaits consideration in the U.S. Senate.