The Cadillac Tax – A “Stupid Mistake”
While I agree with the title, those aren’t my words but rather are the words of Senate Finance Committee Chair Orrin Hatch and Senate Judiciary Chairman Chuck Grassley in a recent letter to the IRS. The paragraph below is another excerpt from the letter and pretty much sums up how I feel about the tax as well (if anyone cares):
“The cure for this mistake is not a carve out for the President’s political supporters but a repeal that benefits all Americans, including the countless teachers, nurses, and other professionals that will be subject to this tax over time. The structure of this tax creates a draconian policy that will penalize countless Americans with a 40 percent excise tax, whether they are a shop foreman, a factory manager, or an office secretary. Now is not the time to divide workers against one another, creating different rules to protect favored constituencies from a poorly designed, drafted, and implemented law. Instead, we urge you to work with Congress to relieve all Americans from the burdens of the health care.”
More details will be coming soon on the Cadillac Tax and the IRS’s most recent guidance on the same.