The facts about the Obamacare Excise Tax

by Laura Ehrenberg-Chesler on November 13, 2014

in Healthcare,inflation/deflation,taxes

From an article on the CNBC website: “A tax that is designed to hit employers will have the effect of harming employees,” Troy said. The Affordable Care Act included the Cadillac Tax as a means to control the spiraling cost of health care, by putting pressure on employers to offer less-generous health insurance plans than they have

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been. The theory is that if people see more of the direct costs of their health care, they will be more conservative in using their insurance. The tax will start in 2018 and impose a 40 percent levy on the cost of individual health plans above $10,200 for individuals and $27,500 for family coverage, with both employer and worker contributions included. Every dollar above those thresholds is taxed at that 40 percent rate, the tax is not deductible by the employer and the thresholds are indexed to inflation.

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