News Detail

House Votes to Repeal Cadillac Tax

Today, the U.S. House of Representatives held its first ever vote to eliminate the Cadillac tax, voting by a margin of 419-6 to repeal this 40% excise tax on the type of high quality health plans SWACCA contractors provide to their employees through collectively bargained agreements. This historic vote culminates two years of effort by SWACCA, working with numerous allies, to repeal this provision passed as part of the Affordable Care Act.  Repealing this onerous tax is essential to ensuring the viability of high-quality health plans, like those offered by SWACCA contractors and many other employers.

The Cadillac Tax was supposed to take effect in 2018.  SWACCA helped to enact two separate delays of the imposition of the mandate.  As a result, the effective date of the Cadillac Tax has been delayed until 2022. But a full repeal is still necessary to provide certainty and predictability for SWACCA contractors and their employees. 

Today’s historic vote is the halfway point towards our goal of full repeal. Our attention now turns to the Senate where the repeal bill must be passed before it can be signed into law by the President.  Today represents the greatest progress made to date in the effort to repeal this provision of the Affordable Care Act. SWACCA will continue fighting.