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Congress Repeals ACA’s ‘Cadillac Tax’

As part of a spending bill President Trump signed on Dec. 20, the Affordable Care Act’s (ACA) “Cadillac tax” has been repealed.

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The U.S. Senate voted 71-23 Dec. 19 to approve the spending bill that included a repeal of the ACA’s excise tax on high-cost, employer-sponsored healthcare plans, also known as the “Cadillac tax.”

The House of Representatives approved the bill, H.R.1865, in a 297-120 vote.

The tax was set to take effect in 2022; it would have taxed employer-sponsored plans worth more than $10,200 for “self-only” coverage and $27,500 for other coverage.


The Tire Industry Association says it had long fought to repeal this tax. In 2017, TIA said in its June 12 weekly legislative update that “legislation that implements a tax on health benefits (‘cap on the exclusion’) will result in a system that is worse than current law for workers and for employers, and failure to eliminate the Cadillac tax will raise coverage costs for American workers, their families and employers, and work against efforts to lower health care costs.”

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