Employers Support Two-Year Delay of 40 Percent Tax on Health Benefits
Today, the National Coalition on Benefits, comprised exclusively of businesses and employer associations, sent a letter to Speaker Ryan and Majority Leader McConnell thanking them for including a two-year delay of the 40 percent tax on health benefits in the Consolidated Appropriations Act of 2016.
- The broad application of this tax means that, over time, the health benefits of all U.S. employers will be subject to the tax, resulting in a distortion of the employer-sponsored health care marketplace that will lead to dramatic reductions in the level and richness of benefits offered to employees;
- The estimated job losses from implementing this tax could total 2.6 million by 2035; and
- It is also estimated that the economic impact of this tax will be significant as it would result in a 1.7 percent reduction in GDP by 2035.
In the letter, the Coalition cites three reasons why employers believe that delaying the implementation of the 40 percent tax is important.
Read the full letter here.
Support a two-year delay of the 40 percent tax. Give Congress and the Administration time to protect health benefits.
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