Proposed Health Care ‘Excise Tax’ a Tax on the Middle Class
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The Senate Finance Committee’s 40 percent excise tax on so-called “Cadillac” health care plans would hit 37 percent of family health insurance plans and 41 percent of single plans by 2019, according to an analysis of the committee’s original health care reform bill conducted by the congressional Joint Committee on Taxation (JCT).
By 2015, according to this analysis, the excise tax would slam 24 million households, growing to 39 million households by 2019. Nearly one-third of middle-class households making between $50,000 and $100,000 would be affected by 2019.
According to a just-released Communications Workers of America (CWA) report on the JCT estimates, the excise tax-part of the health care reform legislation that the Senate Finance Committee passed on Tuesday,
will have a dramatic effect on those plans forcing steep reductions in benefits, shifting costs to workers, and a significant increase in taxes on millions of middle-class families.
