Golden Helps Pass Bipartisan Bill to Protect Maine Workers from Health Insurance Tax

Statement

Congressman Jared Golden (ME-02) voted today to pass legislation that would protect workers' health care benefits from additional taxes. The House passed the Middle Class Health Benefits Tax Repeal Act -- a bill cosponsored by Golden -- which would permanently repeal the Affordable Care Act's "Cadillac Tax.' The Cadillac Tax is a 40% excise tax on certain employer-sponsored health insurance plans, a tax likely to be passed on to workers in the form of higher insurance premiums or the loss of quality health benefits.

"Workers already struggle with high health care costs," Congressman Golden said. "We need solutions that expand access to affordable health care coverage, without penalizing workers who have negotiated for quality health care benefits for themselves and their families. Repealing the Cadillac Tax is a common-sense, bipartisan proposal to ensure workers' health care benefits aren't taxed."

The "Cadillac Tax' is a 40 percent excise tax placed on certain high-cost employer-sponsored health care, including many union-backed health plans, that has not yet gone into effect. The tax applies to employers and employee contributions, contributions to health savings accounts, health reimbursement arrangements, and medical flexible spending accounts. The Middle Class Health Benefits Tax Repeal Act would repeal the Cadillac Tax.

The Kaiser Family Foundation estimates that unless employers were to reduce the generosity of their health insurance plans, 1 in 5 employers -- and likely their employees -- would be affected by the tax if it comes into effect in 2022 as current law requires.

The legislation has the support of many of labor groups, including the AFL-CIO, USW, International Brotherhood of Electrical Workers, International Association of Machinists and Aerospace Workers, American Federation of Teachers, National Nurses United, International Association of Firefighters, and many more.

Source