Skip to content

U.S. House Votes to Repeal Affordable Care Act’s Destructive ‘Cadillac Tax’

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.

Scroll To Top