Workers Win: ‘Cadillac Tax’ Repealed

Working people won a major bipartisan victory this week with the permanent repeal of the “Cadillac tax.” This ill-advised and misleadingly named tax threatened the health care security of millions of working people—pushing employers to hollow out benefits while driving up deductibles and copays.

Oregon AFL-CIO President Graham Trainor responded to the news:

The repeal of the so-called ‘Cadillac Tax’ is a win for workers, especially workers who have organized and bargained for years to win quality health insurance plans in the workplace. Oregon’s unions stand united in our fight to make sure quality, affordable healthcare insurance is available for all working people.  

National AFL-CIO President Richard Trumka responded to the budget package permanently nixing the “Cadillac tax:”

Working people won a major bipartisan victory today with permanent repeal of the “Cadillac tax.” We are thankful to leaders like Rep. Joe Courtney (Conn.), House Speaker Nancy Pelosi (Calif.), House Ways and Means Chair Richard Neal (Mass.), House Ways and Means subcommittee Ranking Member Mike Kelly (Pa.), Senate Democratic Leader Charles Schumer (N.Y.), and Sens. Martin Heinrich (N.M.), Mike Rounds (S.D.), Sherrod Brown (Ohio), Debbie Stabenow (Mich.) and Mazie Hirono (Hawaii), all who played crucial roles in getting us across the finish line.

This ill-advised and misleadingly named tax was threatening the health care security of millions of working people—pushing employers to hollow out benefits while driving up deductibles and copays. It is simply wrong to penalize workers who have successfully negotiated quality insurance coverage. Universal health care will be achieved by protecting and supporting these plans, not undermining them.