Democratic Platform Calls for Repeal of ‘Cadillac Tax’

Democrats are calling for the repeal of an Affordable Care Act tax on high-cost health insurance plans in their 2016 platform.

The final version of the document proposes repealing the so-called “Cadillac tax,” a 40 percent excise tax on high-cost employer-sponsored health care plans as part of Obamacare. Congress has so far delayed implementation of the tax from 2018 until 2020.

“We will repeal the excise tax on high-cost health insurance and find revenue to offset it because we need to contain the long-term growth of health care costs, but should not risk passing on too much of the burden to workers,” the platform says.

It does not explain how the party plans to find such offsets.

Hillary Clinton, the party’s presumptive nominee, said in September she would support repealing the tax.

Congressional Democrats backed repealing the tax last year, with Senate Democrats joining Republicans to vote 90-10 to repeal the provision in a symbolic vote in December. The Obama administration has not backed a full repeal of the tax, but in its budget proposal for fiscal year 2017 it called for the tax to be tailored depending on regional differences.

Many labor unions, employers and insurers oppose the tax, which the Congressional Budget Office has projected would raise about $87 billion over 10 years to help pay for the Affordable Care Act.

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