Posted on 12/11/2015 3:38:05 AM PST by Libloather
Some Democrats are raising concerns that an ObamaCare tax trade-off taking shape in Congress this week could whet the appetite of other industries looking to chip away at the law.
House and Senate leaders say they are inching closer to a year-end tax package - likely wrapped into the governing spending bill - that would pause both the healthcare law's "Cadillac tax" and its medical device tax for two years.
Delaying the taxes would deliver a major win to labor groups and the medical device industry, respectively, after years of heavy lobbying against the provisions.
And even as most supporters of the law say they'd support a two-year delay of both taxes, some Democrats say they're worried that it will only empower opponents to chip away at the law - jeopardizing its long-term fate.
"I've always been the position that the medical device tax should be paid for, in part because it sits alongside a broader set of gives for other industries," Sen. Chris Murphy (D-Conn.), who leads Democratic messaging for ObamaCare, said Thursday. "It's harder to get the medical device tax by itself."
Democrats have long warned that eliminating a piece of ObamaCare affecting one industry, like the medical device tax, would have a domino effect. In the last week alone as chatter increased about the tax tradeoff, another industry - health insurer lobbyists - pushed to repeal its own tax, which is called the health insurance tax. An industry source said Thursday that a suspension of the health insurance tax is expected to be included in the final package.
Another strong supporter of the law, Sen. Claire McCaskill (D-Mo.), also said Thursday she was concerned about eliminating a key funding stream for the law.
"We're all worried about how we support the Affordable Care Act and some of us are really worried about the giant tax extender package," she said. "So yes, some of us are more worried about the fiscal result of repealing a bunch of taxes or extending tax breaks in terms of what we're facing."
She said she supports a temporary delay of both taxes, but said, "I'm not sure I'll go so far as a repeal."
Both the health benefits tax and the medical device tax were intended to raise revenue for ObamaCare - but with new tax dollars coming from vastly different sources.
The Cadillac tax, which levies a 40 percent tax on high health benefits, has been unpopular in both parties since it was written into ObamaCare. Opponents argue that it will almost certainly impact "Chevy" plans as well when it goes into effect in 2018, and that consumers will see an immediate downsizing of their benefits.
In a symbolic vote last week in the Senate, 90 senators supported an amendment repealing the Cadillac tax.
The 3 percent medical device tax, however, is aimed squarely at some of the largest companies in the country. And because it specifically targets the manufacturers - not companies selling the devices - the tax is not directly hitting consumers.
"I certainly care much more about the Cadillac tax than I care about the medical device tax," Murphy said.
Opponents of the Cadillac tax, such as labor powerhouse AFL-CIO, had been hopeful that it would be repealed, or at least delayed, in this year’s budget package. GOP leaders have pushed Democrats to also consider a delay of the medical device tax, seizing on the enormous pressure to eliminate the health benefits tax by unions.
"That's a major Democrat ask, so there needs to be something proportionate in terms of achievement on our side," Sen. John Cornyn (R-Texas) told reporters Wednesday when asked about supporting a Cadillac tax repeal.
Both taxes represent a rare area of bipartisan opposition within ObamaCare. Prominent Democrats like Sens. Al Franken (D-Minn.) and Elizabeth Warren (D-Mass.), who represent states with a heavy device manufacturing presence, have called for the repeal.
But the loudest voices in opposition have been Republicans, who argue it's an unfair tax on company's earnings.
"This is a tax on revenue rather than profit. It leads to some of the highest corporate tax rates in the world and creates undue harm to an industry that not only creates jobs but also improves our health and well-being," Rep. Elise Stefanik (R-N.Y.) said from the House floor Wednesday.
How do I get my own tax?
We all should have our own tax. I mean I want my income tax delayed until say, 2050 or so.Who do I call? Will it help if
I wear a burka and have all my ID photos changed? ( I know it will keep me off the no fly list.)
The EXEMPT “US” Congress (protectors of al Qaeda
and who plot the genocide of Americans) will
not have to pay any tax on this; nor will Moslems
who the “US” Congress made also EXEMPT.
But aren’t they going to need that money for the upcoming health insurer bailout?
And they say that as if it is a bad thing?
The 3 percent medical device tax, however, is aimed squarely at some of the largest companies in the country. And because it specifically targets the manufacturers - not companies selling the devices - the tax is not directly hitting consumers.
What idiots. The consumers *always* pay the taxes, regardless of where in the pipeline the taxes are inserted.
Keep the freakin Cadillac tax in place. The sooner the bandaid is ripped off and BIG Labor feels the pinch that we do, the sooner this utter debacle of a law will be repealed.
Take away the mandate and I’m good.
Odungas “Signature” legislation is already in a death spiral. Why are these Morons even worried about delaying these provisions for two years. Only Republicans can save this POS, I’m sure they will try hard to do so to keep K Street happy.
How about the other taxes hidden in Obamacare? Increased income tax, increased tax on dividend income, increased taxes on estates. Pig faced Congress loots the public while enjoying a fat lifestyle we pay for. Damn them all.
Ignorance or lies (or both)!
Socialists smell money and make a grab for it.That’s the truth and explains about 75 percent of what they do.
Tell that to anyone ever killed by a ricocheting bullet...
Surprised that the Dems aren't all-for delaying the Cadillac tax for two years. We might have a Republican president in place, and the tax would be blamed on him/her, never mind that this pig is Dems all the way.
What a dilemma for the Dems: Keep the taxes in place, which will save their showpiece legislation and continue to stick it to the “1%”, but risk losing the Presidency (not that they had much of a shot to begin with), or delay the hit until the Republicans are in office to take the blame, (and maybe salvage a couple of seats for themselves), and watch their prize die the death it deserves, along with whatever shred of credibility they might still have.
Go with all taxes and make them howl. Obama said he would veto anyway.
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