ObamaCare's Cadillac Tax Coming : Everyone Will Suffer

This is something that most of us that have paid attention knew before this nightmare of ObamaCare was forced down our throats by the democrats, and only the democrats. It's only now that, along with all the other catastrophic failures across the country and around the world, people have awaken to just who is responsible for the country's decline.

Of course now that Mr Gruber has given us some 'inside baseball' of just how the progressive socialists were able to get this bill passed, they lied to us. Interesting as well, given how the election went, a lot of people knew who the bad people were before Gruber and the threw them out of office.

Maybe there is hope for out country. Maybe the people aren't as stupid as Gruber has stated. But don't hold your breath, 2016 is coming.

Cadillac Tax Will Hurt Employees
Source: Tevi Troy, "Another ObamaCare Deception," Wall Street Journal, November 16, 2014.

November 18, 2014

Obamacare's "Cadillac tax" will soon hit American consumers -- even those who do not have high-value health coverage, says Tevi Troy, president of the American Health Policy Institute.

The Cadillac tax is a tax on high-value insurance plans. Starting in 2018, employer plans worth more than $10,200 (or $27,500 for families) will be hit with the 40 percent Cadillac tax. That tax, while it's technically on employer insurance plans, is ultimately a tax on people, says Troy. In a study with economist Mark Wilson, Troy showed how employers will pass on the costs of the tax:

• Large employers hit by the Cadillac tax will pay more than $2,700 per employee annually starting in 2018.
• Seventeen percent of all businesses and 38 percent of large employers will be hit with the tax in 2018.
• To escape the tax, many employers will reduce the health care benefits that they provide to their employees, in order to lower its value and avoid being hit by the tax.
• If those employers reduce health benefits without increasing monetary compensation, their employees will effectively lose up to $6,150.
• If those employers reduce health benefits while raising monetary compensation to make up for the benefit loss, employees will face higher taxes (at an average of $1,050), despite receiving the same level of compensation.

The notion that the Cadillac tax will only affect the highest-value plans is incorrect, says Troy. By 2031, he estimates that average family insurance plans will be hit with the excise tax.