Discussion: Clinton Calls For Repeal Of Health Care Law's 'Cadillac Tax'

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Discussion for article #241188

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Feelin’ the Bern?

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Sarah Kliff of vox.xom has a different take and in her recent article argues the tax is working as intended.

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Thanks, that’s a good piece, explains the situation well. Like you said, Ms. Kliff argues that the tax is working as intended. But whether it is a good idea in the first place is another question. As she notes toward the end of her article, there are some strong arguments that the so-called “Cadillac Tax” is a problematic policy in the first place, at least the way it is currently structured.

I will also just note how misleading the nickname “Cadillac Tax” is. Yes, it hits some high earners, but, as Ms. Kliff notes, it also hits lots of teachers and union members and middle-class families.

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I think she points out that since total compensation is a mix of wages and benefits, moving away from the Cadillac level plans could provide higher wages.

And yes, some middle class workers have these plans. A few years ago, a local city government moved to a new plan aligned with the State of Florida plan because its workers were paying less than $30 a month for very generous benefits for the whole family. It got to be too expensive for them to continue offering it, and just grandfathered in the current members and began offering the new, less-generous plan to newer hires.

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I think she points out that since total compensation is a mix of wages and benefits, moving away from the Cadillac level plans could provide higher wages.

In theory, sure. But I will believe it when I see it. I expect many employers will just use it as an excuse to blame Obamacare for cuts in health care benefits and/or increased employee contributions to premiums, and meanwhile will not offer raises to compensate. If we were in a tighter job market, they couldn’t get away with it. But we’re not, so to a large extent they probably can.

Someday we will join the rest of the industrialized world and provide universal health insurance – and unless we are unbelievably inept in doing so, we can both cover everyone, and save money. In the meantime, we have the task of trying to make a highly dysfunctional “system” a little less dysfunctional – or at least not more dysfunctional. I’m not 100% sure which side of that line the so-called Cadillac Tax falls on. Maybe some of each.

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Agree, hopefully we can improve on the system, and employers don’t use this issue as an excuse to take from workers.

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Nobody likes taxes, and how very Republican of Hillary Clinton to demagogue about taxes.

I’ll take her seriously when she provides a total proposal including how to replace the revenue lost by repealing the tax – that’s how Democrats do it.

Don’t forget, when Hillary attempted health care reform in Bill Clinton’s administration, she was an utter and absolute failure at it. Don’t let her screw up the reforms we have no thanks to her.