TAX CUT HIDDEN IN SPENDING BILL
When the House and Senate approved a short-term government spending bill, the majorstory was how it ended a government shutdown. But for HR pros, there’s another storytucked away in the legislation.That story is all about the provisions included in the short-term government spending billthat would delay and stop key ACA provisions.
The provision employers will be most interested in is a delay of the ACA’s Cadillac tax until2022. It’s currently slated to take effect in 2020.As HR pros are only to aware, the ACA’s so-called “Cadillac Tax” will impose a 40% non-deductible excise tax on the value of health insurance plans exceeding $10,200 forindividuals and $27,500 for family coverage.
The spending bill also stops the ACA’s 2.3% medical device tax for this year as well as 2019.Plus, it freezes the health insurance tax or “HIT” tax for 2019.Yes, this bill is only meant to be a temporary stopgap measure and the entire bill is highlyunlikely to remain the same as it’s currently written.However, employers should still be encouraged by the ACA changes included in the bill.Reason: Their approval suggests Congress can have success dismantling other unpopularACA provisions in a similar manner.So Republicans may also continue to try adding other ACA changes in future must-passlegislation.