The most recent congressional agreement to extend government funding included a provision delaying the so-called Cadillac Tax for two additional years. The Cadillac Tax, created by the Affordable Care Act, imposes a 40% tax on the value of employer-provided health coverage above a certain dollar limit. The income from the tax is intended to help fund benefits for the uninsured.
Employers have been fighting the Cadillac Tax because they want to be able to provide rich benefits to their employees without being subject to additional taxes. The tax was initially scheduled to take effect in 2018, but had been previously delayed by 2 years. The budget act delayed the tax again until 2022.
