The House of Representatives is poised to vote to repeal the “Cadillac tax” on high-cost employer health insurance, removing a piece of the Affordable Care Act that never took effect.
Wednesday's scheduled vote could deliver a victory to labor unions and employers that teamed up against the tax. On the losing side: deficit hawks and health economists who worry about distortions caused by favorable tax treatment of employer-sponsored insurance.
The tax is a 40% levy on health insurance above certain thresholds—about $11,200 for individuals and $30,100 for families, starting in 2022. It counters the tax law that says employees must pay individual income taxes on wages but not on the value of their health policies.
