The WasteWatcher: The Staff Blog of Citizens Against Government Waste

Congress Impounds Obama's Cadillac Tax

The WasteWatcher is the staff blog of Citizens Against Government Waste (CAGW) and the Council for Citizens Against Government Waste (CCAGW). For questions, contact blog@cagw.org.


Yesterday in the Senate, legislators voted 90-10 in support of the Heller Amendment that would preemptively repeal the so-called ‘Cadillac Tax’ on employee health plans.

CAGW spoke out in November on some of the unfair taxes on individuals and families in the ACA. The Cadillac tax is a 40% tax on health insurance plans over $10,200 for an individual and $27,500 for a family. As a result of this vote, Americans will not have to pay even more to have good health insurance plans for themselves or their family. The tax was intended to go into effect in 2018.

The repeal of this tax deals a serious blow against Obamacare as the expected revenue from this tax was estimated to be $90 billion over a ten-year period. This is now $90 billion less for Obamacare to function.

The 10 senators who voted in opposition to this amendment (i.e., in favor of keeping the tax) include: Barbara Boxer (D-Calif.), Tom Carper (D-Del.), Sam Coats (R-Ind.), Bob Corker (R-Tenn.), Dick Durbin (D-Ill.), Tim Kaine (D-Va.), Joe Manchin (D-W. Va.), Claire McCaskill (D-Mo.), Ben Sasse (R-Nev.), and Mark Warner (D-Va.).

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