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Congress Delays Cadillac Tax Until 2020

Employers concerned about the implementation of the ACA's so-called Cadillac Tax can breathe a bit of a sigh of relief today, as Congress has extended the Tax's start date from 2018 until 2020.  Many believe that this is only the first step in the eventual repeal of the tax.

Curiously, Congress didn't apply its usual "pay-go" rules for delaying the tax, expected to cost the Treasury $28 billion over the two year extension.  That is, both Democratic and Republican Congresses for the past decade have required that any tax cut, such as the delay of the Cadillac Tax, be "paid for" by some other tax increase.

Watch for more developments on the Cadillac Tax during the 2017 and 2019 Congressional years.

Posted on December 18, 2015 by Gary B. Kushner, SPHR, CBP, President and CEO

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