Speak Up Now to Support Permanent Repeal of the Cadillac Tax

It’s time to tell Congress just how much employers care about the repeal of the Cadillac Tax.

The Alliance recently joined a diverse group of organizations in signing a letter asking members of Congress to support legislation that will permanently repeal the Cadillac Tax. The bill is titled HR 748, the Middle Class Health Benefits Tax Repeal Act of 2019.

Now, we’re asking Alliance members to write letters of their own supporting HR 748.

Currently slated to take effect in 2022, the Cadillac Tax is a 40 percent tax on employer-sponsored health care coverage that exceeds certain benefit thresholds.

By repealing this tax, Alliance member companies, along with your employees and their families, will be spared this onerous tax that will only contribute to mounting health care costs.

Who’s On Board?

The bill has been filed in the US House of Representatives and already has 180 co-sponsors, including Reps. Mike Bost, Cheri Bustos, Rodney Davis, Adam Kinzinger, Raja Krishnamoorthi, Darin LaHood, Daniel Lipinksi, Janice Schakowsky from Illinois and Reps. Mike Gallagher and Mark Pocan from Wisconsin.

What Can Alliance Members Do?

While it’s important for members of Congress to hear from industry experts and coalitions like The Alliance, it’s even more important for members to hear directly from their constituents, the people who elect them to office.

Recognizing that direct communication with your representative and senators is a critical component of our representative democracy, we ask that you contact your members and ask them to support HR 748 or thank them for already sponsoring the bill.

In addition to contacting your House of Representatives member, be sure to contact your two United States Senators, as companion legislation is expected in the Senate and of course HR 748 would need to pass both the House and Senate to become law.

Instructions for finding your senator or representative are provided below, along with suggested options for contacting them.

Thank you for your consideration to become an active voice for employers on this important issue.  If you have any questions, please contact Cheryl DeMars, Alliance president and CEO, at 608.210.6621.

How to Contact Your Member of Congress

Contacting your members is easy, and can be done by anybody, not just lobbyists.  (If your company does employ a Government Affairs staff, you can coordinate this activity with them.) To get started, find your member and their contact information.

If you have time, mail a handwritten note to your Representative and two Senators.   In Wisconsin, you’ll want to contact Sen. Tammy Baldwin and Sen. Ron Johnson.  In Illinois, contact Sen. Tammy Duckworth and Sen. Dick Durbin.

Writing a Letter — What Should You Say?

For handwritten or online letters, the best message will be short and concise, for example:

Dear Representative Smith,

Thank you for signing your name as a cosponsor of HR 748.  As an employer in your district, I appreciate that you recognize the importance of employer-sponsored health benefits and the dangers of balancing the budget by taxing the value of American workers’ health plans. 

Or

Dear Representative Smith,

As an employer in your district, I write to ask for your support of HR 748, the Middle Class Health Benefits Tax Repeal Act of 2019. American employers are proud to offer health benefits to employees and family members, as doing so contributes to a healthy work force.  It also prevents employees from having to worry about their health coverage. But this source of stability is at risk, as Congress has yet to offer a permanent repeal of the “Cadillac Tax,” the inappropriately named tax that balances the budget at the expense of middle class health plans. I ask that you consider supporting HR 748 that provides much needed relief for middle class American workers.

Since the bill is yet to be filed in the US Senate, the notes to your Senators should ask those members to support the House bill or to sponsor companion legislation, for example:

Dear Senator Smith,

As an employer in your district, I write to ask for your support for the Middle Class Health Benefits Tax Repeal Act of 2019.  This bill has been filed in the House, HR 748, and enjoys bipartisan support, with 180 co-sponsors. I hope that you will consider sponsoring companion legislation in the Senate or supporting the House bill when it passes that chamber.

American employers are proud to offer health benefits to employees and family members, as doing so contributes to a healthy work force and prevents employees from having to worry about their health coverage. But this source of stability is at risk, as Congress has yet to offer a permanent repeal of the “Cadillac Tax,” the inappropriately named tax that balances the budget at the expense of middle class health plans. I ask that you consider supporting this important legislation that provides much needed relief for middle class American workers.

Keep in mind that these examples are just that and can be personalized with any additional information you’d like to share, such as the name and size of your business or any anecdotal information that illustrates the benefits of employer-sponsored care for your business and employees.

Short on Time?

If you are short on time, you can complete the “contact” web form located on the members’ websites.  And, if you are really short on time, just tweet at them. Twitter handles are found on many of the members’ websites. Twitter messages are limited to 280 characters and should be simple and direct.