Congress Includes Provision to Repeal Cadillac Tax as Part of Year-End Spending Deal
The year-end package to fund the federal government through the rest of fiscal year 2020 will include provisions permanently repealing the Cadillac tax. SWACCA has worked overtime this year, and more specifically over the last few weeks, to ensure that permanent repeal of the Cadillac tax was included as part of any must-pass bills Congress considered before the end of the year.
The inclusion of Cadillac tax repeal comes on the heels of a 419-6 vote in the House of Representatives to repeal this 40% excise tax on the type of high quality health plans SWACCA contractors provide to their employees through collectively bargained agreements. SWACCA also worked to secure 62 bipartisan cosponsors in the Senate, helping to demonstrate strong support for repeal in both chambers of Congress. Securing this provision culminates two years of effort by SWACCA, working with numerous allies, to permanently eliminate this onerous tax and ensure the viability of high-quality health plans, like those offered by SWACCA contractors and many other employers.
Congress has until this Friday, December 20 to avoid a federal government shutdown. Barring anything unexpected on votes, we expect that by the end of the week a repeal of the Cadillac tax could be signed into law.
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