Congressional Spending Deal Could Delay Obamacare Provisions

Date: December 16, 2015

Cadillac, Medical Device Taxes To Be Delayed Under Proposal

On Tuesday, Republican and Democratic negotiators in the House reached a tentative $1.1 trillion spending proposal that would also affect some key provisions of Obamacare. The New York Times cited lawmakers involved in crafting Tuesday’s spending deal as saying they had “tentatively agreed to delay” Obamacare’s controversial Cadillac tax on high-end healthcare plans. The tax has been scheduled to take effect in 2018 and last two years. Also under terms of the spending-package deal, Obamacare’s medical-device tax would be suspended through 2017 and there would be a one-year delay of “a separate annual fee on health insurance” companies, the Times said. Politico reported that in a closed-door meeting with fellow Republicans, House Speaker Paul Ryan (R-WI) “touted a pause in Obamacare’s ‘Cadillac tax,’” and “preservation of several other policy preferences in the year-end deal, which include $1.149 trillion in spending and several hundred billion in tax breaks.” The Hill reported that delaying the Cadillac tax “is a top priority of labor unions.” The White House has opposed delaying the tax, “but officials have signaled” that Obama wouldn’t veto the package over the issue of a two-year delay.

What This Means For Small Businesses

Small businesses have struggled under mounting capital expenditures, and a chief concern among many business owners is the rising healthcare costs for employees. Obamacare has proven to be a burdensome mandate for small businesses. Although a full repeal of Obamacare is ideal, a delay of the Cadillac tax along with other taxes associated with the mandate could help the bottom lines of small businesses.

Additional Reading

The Washington Post also covered the spending plan.

Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.

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