The House of Representatives this week will vote on H.R. 748, the Middle Class Health Benefits Tax Repeal Act of 2019. It is expected to pass the House by a wide, bipartisan margin.
H.R. 748 repeals the so-called “Cadillac Plan tax,” one of the big tax hikes that paid for Obamacare. The Cadillac Plan tax imposes a 40% excise tax on very expensive health insurance policies. The tax was meant to be a sort of proxy for limiting the tax benefit for employer-provided health insurance (for example, labor union plans and those in high-regulation states), to the extent the coverage is on the outer margins of cost. The tax has never gone into effect, and is currently delayed until 2022.
