There aren’t many things Democrats and Republicans agree on in Washington, D.C. these days. But last week, members of the U.S. House of Representatives, joined together and voted 419 to 6 in favor of killing the Cadillac Tax.
The bi-partisan bill to repeal the tax on health insurance plans was co-sponsored by an astonishing 369 lawmakers. All four Iowans in the U.S. House voted to kill the tax.
Widespread support of repealing the Cadillac Tax shouldn’t be surprising. While the tax was initially aimed at “Cadillac” health insurance plans, it has morphed and now will slap a 40 percent tax on nearly all employer-provided health coverage beginning in 2022.
The tax would hit Iowans particularly hard, since more than 55 percent of all Iowa families receive their health insurance through an employer.
Workers at major Iowa employers like Pella, Winnebago, John Deere, HNI and Ruan Transportation would be subject to the tax — as would laborers associated with every union in the state.
If the Cadillac Tax is not repealed, employers will be left with two options to make ends meet: provide cheaper, worse insurance that leaves workers paying significantly more out of pocket for health care or eliminating jobs to free up money to pay the hefty tax bill for workers fortunate enough to keep their jobs.
While members of the House voted overwhelmingly to repeal the Cadillac Tax, the Senate has shown little interest in taking up the issue. Sen. Joni Ernst has been a strong voice of opposition to the Cadillac Tax and has worked to protect the health care of hard working Iowans.
Sen. Grassley and Sen. Ernst have always shown a willingness to do the right thing and put Iowans first. There’s little doubt that what’s right for Hawkeye State residents is to send the Cadillac Tax to the junk yard.
Thad Nearmyer
Monroe