Media Contact

LIUNA Action Network

Join the LIUNA Action Network to get involved - it's your union. Learn more by signing up with LIUNA.

Alliance To Fight The 40 Applauds Additional Senate Measure To Repeal The Cadillac Tax

For Immediate Release
September 24, 2015
Contact: Tara Bradshaw (202) 467-4306


Washington — Today, the Alliance to Fight the 40, commended Senator Sherrod Brown (D-OH)
for introducing ‘‘American Worker Health Care Tax Relief Act of 2015,” a bill to repeal the 40%
tax on health benefits. The Alliance to Fight the 40 is a broad-based and diverse coalition of
employer and employee groups working to repeal the so-called “Cadillac Tax.”


“We would like to thank Sen. Brown for introducing a bill to repeal the ‘Cadillac Tax’ that will
help protect the health benefits of millions of working Americans,” said Kate Hull, Executive
Director of the Corporate Healthcare Coalition. “With overwhelming bipartisan support on two
repeal bills in the House and bipartisan repeal bills introduced in the Senate, the time is NOW to
end this regressive tax.”


"This tax does not only hit 'Cadillac' plans. It also hits ordinary plans that are expensive for all the
right reasons -- they cover older and disabled workers and families with catastrophic health
events. The tax must be repealed to preserve vital protection for these vulnerable populations,"
said James A. Klein, president of American Benefits Council.


"We appreciate Senator Brown’s efforts to protect employer-sponsored health plans that help
counties offer competitive health benefits to employees," said National Association of Counties
President Sallie Clark. "The excise tax would impede counties’ ability to attract and retain quality
employees. It would also impact county budgets and place additional burdens on taxpayers."


"LIUNA commends Senator Brown for introducing legislation to repeal the 40% health benefits
tax. If enacted, his legislation, along with the bipartisan bill introduced last week by Senators
Heller and Heinrich, will ensure that millions of Americans won't have to face forced benefits cuts,”
said LIUNA General President Terry O'Sullivan. “This needs to be a bipartisan effort and we
believe that with the two bills now introduced in the Senate we will be able to see this regressive
tax repealed once and for all."


"While the ACA has done a great job of giving health insurance to the uninsured, we must repeal
the Cadillac Tax to make sure it doesn't take benefits away from the 150 million hardworking
Americans who already have it," said Tom Flynn, political and legislative director for the United
Brotherhood of Carpenters and Joiners of America. "The Cadillac Tax also unfairly penalizes
workers because they may happen to live in high-cost states.”


Sen. Brown’s effort to repeal the Cadillac Tax joins other bipartisan efforts in the Senate. On
September 17th, Senators Heller and Heinrich introduced the bipartisan S. 2045, the “Middle
Class Health Benefits Tax Repeal Act of 2015.’’


The 40% tax applies to plans sponsored by both private sector and public sector employers, nonprofit
organizations and even self-employed individuals. The tax penalizes employers that have
employees with greater health care needs, workforces with higher numbers of older workers and
employers based in higher cost areas.


The Alliance to Fight the 40 is a broad based coalition comprised of public and private sector
employer organizations, unions, health care companies, businesses and other stakeholders that
support employer-sponsored health coverage. This coverage is the backbone of our health care
system and protects over 150 million Americans across the United States. The Alliance seeks to
repeal the 40% tax on employee health benefits to ensure that employer-sponsored coverage
remains an effective and affordable option for working Americans and their families.


For more information on the 40% Tax on Health Benefits, visit our website at fightthe40.com
or follow us on Twitter @Fightthe40.


# # #