The Democratic Party released its platform, which calls for end to Obamacare tax. The Republicans have been saying it for years. Hillary has more recently agreed, and the might of the Democratic party is now saying it too. You can read the 2016 Democratic Party Platform here. But finding the official statement isn’t easy. It is buried in a singlesentence on page 35:
We will repeal the excise tax on high-cost health insurance and find revenue to offset it because we need to contain the long-term growth of health care costs, but should not risk passing on too much of the burden to workers.”
You may like your flexible spending account … you might not be able to keep it.
Obamacare’s impeding “Cadillac tax” on high-cost health plans threatens to hit 1 in 4 U.S. employers when it takes effect in 2018—and will impact 42 percent of all employers by a decade later, according to a new analysis.
And many of those employers will be subject to the heavy Obamacare tax because they offer popular health-care flexible spending accounts to workers, which, ironically, are designed to reduce the income tax burden to those employees.
As a result, the co-author of the analysis expects the health FSAs to start being phased out and “largely disappearing” over time by companies looking for reduce their exposure to the Cadillac tax.
Noted tax expert and attorney Robert W. Wood returns to Forbes. The subject this time is the dreaded-by-business Obamacare “Cadillac Tax.” According to Wood’s recent post in Forbes (online, 5/15) it seems increasingly this levy will affect both individuals and healthcare plans.
Wood also writes (and compellingly asks) “The tax is increasingly under fire from Congress, and this marketplace reaction is fueling the bonfire. If no one pays it, how else will we pay for Obamacare? The Supreme Court upheld Obamacare as a tax law, and it contains many taxes. One tax that hasn’t yet kicked in is the Cadillac tax. In enacting the law in 2010, the Cadillac tax was buried, not applying until 2018.”
Wood’s Forbes column gives some history of at least the intent of the 2010 Affordable Care Act, that “The theory of the law is that health insurance should be the great leveler. The Affordable Care Act included the Cadillac tax as a tool to cut healthcare costs. It puts direct and forceful pressure on employers to offer less-generous health insurance plans. Starting in 2018, Obamacare imposes a 40 percent tax on the cost of individual healthcare plans above $10,200 for individuals and $27,500 for family coverage.”
Wood describes the tax as “decidedly punitive.” The purpose of the tax is to ensure “that more health insurance dollars are spent across a greater number of people,” according to Wood in Forbes.