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https://www.heller.senate.gov/public/index.cfm/videos?ContentRecord_id=f0be6730-f625-4ed0-94c4-55b390a22b3e ICYMI: Heller: I will work with anyone to see the Cadillac Tax fully repealed by the end of the year. 2015-11-17 2015 2015-11 Republican House NV Dean Heller H001041 www.heller.senate.gov     legacy (Washington, DC) Today, U.S. Senator Dean Heller (R-NV) spoke on the Senate floor urging his colleagues to support his legislation to repeal the Affordable Care Acts (ACA) Cadillac Tax. Click here or below to watch his speech. Background: In September, Senators Heller and Martin Heinrich (D-NM), introduced the Middle Class Health Benefits Tax Repeal Act, which fully repeals the ACAs Cadillac Tax. The two Senators introduced this Senate companion to U.S. Congressman Joe Courtneys (D-CT02) House legislation. Beginning in 2018, the Cadillac Tax will tax employers whose health insurance plans cost more than $10,200 a year for individuals and $27,450 a year for families at 40 percent of the cost above those limits. In Nevada alone, 1.3 million workers who have employer-sponsored health insurance plans will be hit by this tax. Remarks as prepared: Before I begin I would like to first offer my condolences to the nation of France. She is one of our oldest allies and the people of America stand proud with her during this tragic time. Mr. President, I rise today to share my concerns with the devastating impacts of the Cadillac tax, enacted as part of the Affordable Care Act. The Cadillac Tax is a 40 percent excise tax set to take effect in 2018 on employer sponsored health insurance plans. In Nevada, 1.3 million workers who have employer-sponsored health insurance plans will be hit by the Cadillac tax. These are public employees in Carson City, service industry workers on the Strip in Las Vegas, small business owners and retirees across the state. My colleagues from across the country have heard the same concerns I have; this 40 percent tax will increase costs, significantly reduce benefits, or result in employers getting rid of employer sponsored health coverage altogether. Mr. President, this is precisely why Senator Martin Heinrich of New Mexico, and I have authored the Middle Class Health Benefits Tax Repeal Act of 2015, the only bipartisan piece of legislation to fully repeal this onerous tax My bill has 19 bipartisan cosponsors. Over the summer, when I committed to taking a leadership role to fully repeal this tax I waited for months for a sign that my colleagues across the aisle would work together to repeal this tax. There was a lot of talk, but no action. And to date there is still little action from these same colleagues which is why I ask them once again to join me in repealing this bad tax. This shouldnt be a partisan issue yet my colleagues across the aisle have turned it into one. That is why I commend Senator Heinrich for joining me in working together in a bipartisan manner to fully repeal this tax. And this repeal needs to happen and happen quickly for employers to be able to plan. Whether it is through our bill or any of the must pass measures this Chamber takes up in the next 6 weeks before the end of this year - like tax extenders - the Cadillac tax needs to be fully repealed. As a member of the Senate Finance Committee, this is something that I have engaged my colleagues on and will continue to do so especially as we hopefully look to move tax extenders before the end of the year. This is not just something that has bipartisan support in the Senate, there are over 218 cosponsors in the House of Representatives, and 83 organizations have endorsed our efforts to repeal the Cadillac tax. It is very rare these days to see this much agreement in Washington. Organized labor, chambers of commerce, local and state governments, and small businesses have come together with a bipartisan group of Senators putting forth a solution to fix a problem affecting so many hard working Americans. The Cadillac tax doesnt officially go into effect until 2018, but the impact of this tax is being talked about more and more because employers are starting to make major changes now to their workers health benefits in order limit the impact of the tax, or avoid the tax altogether. I have heard from large companies, small businesses, and organized labor- such as the Culinary union in Nevada and they are all saying the same thing, the Cadillac tax needs to be fully repealed or our employees will experience massive changes to their health care. Were talking about reduced benefits, increased premiums, and higher deductibles. All of these lead to more money being taken out of the pockets of hard working families. According to the non-partisan Kaiser Family Foundation, employees who have job-based insurance have witnessed their out-of-pocket expenses climb from $900 in 2010 to $1,300 in 2015, on average. Thats almost a 50 percent increase in 5 years. Employees working for small businesses now have deductibles over $1,800. Kaiser also notes that deductibles have risen nearly seven times faster than workers earnings since 2010. Kaisers President, Drew Altman said, Its quite a revolution. When deductibles are rising seven times faster than wages its means that people cant pay their rent they cant buy their gas. They cant eat. As deductibles rise, another way employers are planning on avoiding Obamacares massive new tax, is by eliminating popular health savings accounts (HSAs) and flexible spending accounts (FSAs). Over 33 million Americans who use Flexible Spending Accounts (FSAs), and 13.5 million Americans who use Health Savings Accounts (HSAs) may see these accounts vanish in the coming years as companies scramble to avoid the laws 40 percent tax. HSAs and FSAs are used for things like hospital and maternity services, child care, dental care, physical therapy, and access to mental health services. Access to these life-saving services could all be gone for tens of millions of Americans if the Cadillac tax is not fully repealed. Everyday there is a new article in the national press talking about how middle class workers are going to be hit by this tax. Towers Watson, a management and consulting firm, did a survey of large businesses who typically offer the most comprehensive coverage. They found that by 2018 more than half of employers are planning to significantly cut what they contribute to insure employee spouses and children. The United Parcel Service (UPS) is one of those companies that have already said they plan on, limiting plan eligibility for spouses of employees. Shaun OBrien, assistant policy director at the AFL-CIO said recently that, Employers are coming to the table asking for cuts in benefits based on their preliminary projections around the 40 percent excise tax. To make matters worse Chief Financial Officer of a waste and recycling company, Action Environmental, recently told the Wall Street Journal that his company would consider getting rid of its employee coverage altogether because Obamacares Cadillac tax. He said, Id be lying if I said we havent had that discussion. Delta Airlines expects Obamacare will cost it $100 million per year. One reason for the new costs is the 40 percent excise tax on Deltas employee health benefits. As if Americans dont already have enough issues with airlines these days. Out of all the news America see from the Cadillac tax none of it is positive. The goal of health reform should be to help those who do not have health coverage, and lower costs for those who already have insurance. This tax doesnt achieve either of those goals and everyone knows it. I will do everything I can to see this tax fully repealed. There is real urgency to get this done. I will work with anyone to see the Cadillac tax fully repealed by the end of the year. Once again whether it is my bipartisan bill or in a year-end package like tax extenders we need to repeal this bad tax. Fully repealing the Cadillac tax is an opportunity for Republicans and Democrats to join forces and work together, to repeal a bad tax for one purpose: Help 151 million workers keep the health insurance they like. Thank you, Mr. President, I yield the floor. ### 1 2026-03-30T12:14:52Z 2026-03-30T12:14:52Z
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