IAFF Strikes Important Win as Congress Passes Two-Year Delay of Cadillac Tax
In a major victory for the IAFF, as part of an omnibus spending package to fund the government through next year, Congress approved a two-year delay of the Cadillac tax: a 40 percent tax on high-cost health plans that was scheduled to take effect in 2018. In addition to the two-year delay, several other tweaks to the tax were added, including an inflation adjusted increase in the premium caps, a GAO study on the feasibility of the health plan used by government workers as a benchmark for the law’s age and gender adjustments and the ability for employers to deduct excise tax payments. While Congress did not fully repeal the tax at this time, delaying this onerous tax is a major victory. Since its enactment as part of the Affordable Care Act (ACA), the IAFF and its members have been the leading advocate on Capitol Hill opposing this tax.
