Business Roundtable is an association of chief executive officers of leading U.S. companies working to promote a thriving economy and expanded opportunity for all Americans through sound public policy.
Businesses of Every Size Say Tax Will Limit Innovation, Reduce Highly Effective Wellness, Prevention and Health Benefits
Washington, D.C., October 21, 2015 – The National Association of Manufacturers (NAM), Business Roundtable and U.S. Chamber of Commerce today released the results of a national poll of registered voters showing that three-quarters of all respondents nationwide are concerned about the employee benefits tax, a 40 percent tax on health benefits, also called the “Cadillac tax,” included in the Affordable Care Act. A strong majority of respondents (66 percent nationwide) say this tax should either be delayed or repealed, and many believe the Affordable Care Act has already made health care less affordable.
“As voters learn more about the looming employee benefits tax, they are expressing concerns about the serious problems it will create: higher health care costs for employers and lower quality health care for employees,” said NAM President and CEO Jay Timmons. “America’s manufacturers share voters’ concerns. This new tax will affect an estimated 82 percent of manufacturing businesses by 2023. Our companies want to ensure a happy and healthy workforce, but this tax poses yet another challenge to achieving that important goal.”
“America’s largest employers oppose the 40 percent tax because it threatens health care innovation and could end up limiting important wellness and prevention benefits that promote better health and reduce overall cost growth,” said Business Roundtable President John Engler.
“The 40% tax on health plans is yet another example of how the Affordable Care Act has failed to curb rising costs. It is ironic that a law, which requires businesses to provide a certain level of health coverage, includes a provision that will undercut the health coverage that more than 160 million Americans enjoy,” said U.S. Chamber of Commerce President and CEO Thomas J. Donohue,. “There is bipartisan momentum on Capitol Hill to repeal this provision. If Congress doesn't act, this tax will push costs higher and it will steadily unravel employer-sponsored coverage, the backbone of our health care system.”
The national online poll of 1,543 registered voters conducted by Morning Consult from September 24 to 27 revealed deep anxiety across party lines about the employee benefits tax.