PRINTER'S NO. 2549
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE RESOLUTION
No.
592
Session of
2015
INTRODUCED BY SAINATO, KOTIK, SAYLOR, D. COSTA, READSHAW,
MAHONEY, BARRAR, IRVIN, WATSON, GIBBONS, KLUNK, McNEILL,
COHEN, GROVE, MOUL, KORTZ, BISHOP, DRISCOLL, O'NEILL, BAKER,
DONATUCCI AND GILLEN, NOVEMBER 18, 2015
REFERRED TO COMMITTEE ON HEALTH, NOVEMBER 18, 2015
A RESOLUTION
Urging the Congress of the United States to repeal the "Cadillac
tax" provision of the Patient Protection and Affordable Care
Act.
WHEREAS, Beginning in 2018, the Patient Protection and
Affordable Care Act (PPACA) requires the imposition of an annual
40% excise tax on health care plans with annual premiums
exceeding $10,200 for individuals or $27,500 for families; and
WHEREAS, Also known as the "Cadillac tax," the 40% excise tax
is not a deductible business expense and will force plan
administrators to pay income tax on the excise tax, subsequently
increasing the impact of the tax; and
WHEREAS, The 40% tax penalizes employers for health care cost
factors they cannot control, such as higher numbers of disabled
workers, unusual cases of high-cost health problems, premature
babies, larger families, locations in high-cost areas, employer
size and industry type, such as manufacturing or law
enforcement; and
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WHEREAS, Employers, labor unions and municipalities are
anticipating this massive tax by preparing to increase
deductibles, reduce benefits and shift costs to consumers and
property tax payers alike; and
WHEREAS, The "Cadillac tax" places an unnecessary burden on
employees throughout this country and unfairly punishes
Americans for purchasing plans that the Federal Government
determines to be excessive; and
WHEREAS, While the tax was intended to reduce the cost of
health care, it will ultimately hurt middle class Americans by
adding extra costs as employers offer the same plans with
greater costs or reduced benefits, which is the opposite of the
PPACA's stated goals; and
WHEREAS, Failing to repeal this tax will result in cuts to
benefits and disease prevention programs and will decrease the
overall quality of health care coverage; and
WHEREAS, S. 2045, the "Middle Class Health Benefits Tax
Repeal Act of 2015"; S. 2075, "American Worker Health Care Tax
Relief Act of 2015"; H.R. 879, "Ax the Tax on Middle Class
Americans' Health Plans Act"; and H.R. 2050, "Middle Class
Health Benefits Tax Repeal Act of 2015" are bipartisan
approaches which repeal the "Cadillac tax"; and
WHEREAS, As policymakers, we should not deter employers from
offering high-quality health care coverage to their employees,
but instead ensure that high-quality health care coverage is
available for all Americans, especially those with serious
health problems and our senior citizens; therefore be it
RESOLVED, That the House of Representatives of the
Commonwealth of Pennsylvania strongly urge the Congress of the
United States to repeal the "Cadillac tax" provision of the
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Patient Protection and Affordable Care Act; and be it further
RESOLVED, That the House of Representatives of the
Commonwealth of Pennsylvania urge Congress to support S. 2045,
S. 2075, H.R. 879, H.R. 2050 or any other proposal that repeals
the "Cadillac tax"; and be it further
RESOLVED, That copies of this resolution be transmitted to
each member of Congress from Pennsylvania.
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