UPDATED 10:28 AM PT – Thursday, July 18, 2019
The House voted to stop an unpopular Obamacare tax from taking effect. Republicans and Democrats joined together Wednesday to repeal the so-called Cadillac tax. The provision seeks to excise a 40-percent tax on top tier insurance plans in an attempt lower nationwide health care costs.
The tax has faced opposition by both sides of the aisle, causing several delays in its roll out. Critics say a fundamental issue of the Obama-era measure is that it is not adjustable to region, income level or health condition. Due to its lack of flexibility, legislators claim the levy harms middle class families the most.
“This tax will have a disproportionate impact on working families, particularly families with incomes between $38,000 and $100,000 a year while sparing the wealthy,” stated Rep. Judy Chu, (D) California
Both employers and unions have also stood in opposition to the measure as it penalizes employers for providing “luxurious” benefits for employees.
According to a Kaiser Family Foundation analysis, the Obamacare tax could affect 46-percent of employers by the year 2030. The vote to repeal the provision comes as Republicans attempt to throw out Obamacare all together.
“Obamacare doesn’t work. It’s too expensive…you take a look at everything with deductibles; it’s a disaster. It’s a disaster for our people. We’re not going to allow it to go. So, we’re coming up with plans. We have a lawsuit right now going, where phase one of the lawsuit terminates Obamacare — essentially terminates Obamacare.” — President Trump
A coalition of Republican attorneys general and governors in 20 states have filed a lawsuit against the Affordable Care Act. According to the Trump administration-backed suit, the law is unconstitutional now that the individual mandate was repealed by the 2017 Republican tax cut law.
A federal judge in Texas agreed with the plaintiffs, and the case is now before an appellate court in New Orleans. The case could reportedly be heard by the Supreme Court if the appellate court backs the ruling.