Congress Won't Whack the Cadillac
In this case the Middle Class Health Benefits Tax Repeal Act of 2019 has 361 co-sponsors – 83% of all members.
So, why then with such huge bipartisan support will repeal fail? It is simple, from an IB post back in January of 2018:
“But here’s the truth. Congress needs the Caddy Tax. They need it for the revenue on paper. When CBO scores in ten year windows it shows an accounting sleight of hand that many of us don’t know. It shows as revenues – whether collected or not.
Having IOU’s is how they trick us in to believing that they are good stewards of our tax dollars. Sad truth is they simply don’t care about spending your money. They care about you voting to re-elect them. Which is why kicking the can down the road is the avenue of choice for those we elect in DC.“
In this installment of Congressional drama the supermajority will use the opposite angle saying that they can’t kill the tax without offsetting revenues. They will again claim to be good stewards of our tax dollars and voice how much they dislike the tax.
But when the dust has settled the Cadillac Tax will live. Probably to never see the light of day except on those occasions where playing politics allows it to briefly see the light of day.
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