On Saturday, a letter to the editor from National Association of Manufacturers (NAM) Vice President of Government Relations Joe Trauger ran in The Washington Post highlighting manufacturers’ concerns with the employee benefits tax, commonly called the “Cadillac tax.” This 40 percent tax on employee benefits is a major issue for manufacturers as rising health care costs remain a top concern.
“The recent ‘Cadillac tax’ editorial missed the mark regarding the so-called virtues of the Affordable Care Act’s tax on employee benefits. To suggest that doing away with on-site clinics, flexible spending accounts and other benefits is good policy and will reduce health-care spending is misguided. Manufacturers have identified health-care expenditures as one of their top business challenges. The ACA has done nothing to mitigate those concerns. Most manufacturers will tell you that coverage is more expensive as a result of the law.”
Last week, the NAM released a new study looking at this costly tax. NAM’s SVP of Communications Erin Streeter and SVP of Policy and Government Affairs Aric Newhouse discussed the impacts of the tax in our ShopTalk video series and the action congress is debating to provide relief. As soon as this week, Congress could once again be voting on a delay of this costly tax.