House votes to repeal unpopular 'Cadillac Tax' provision of Obamacare
WASHINGTON, D.C. - The U.S. House overwhelmingly voted today to repeal one of Obamacare’s most unpopular provisions.
That’s the so-called “Cadillac Tax” on high-cost, high-benefit insurance. It would have charged an additional 40-percent tax on employer-provided health insurance that offered excess benefits. The tax would have generated roughly $200 billion in Obamacare subsidies.
The repeal was approved by a 419-6 vote.
Congressman Mike Kelly is the lead Republican behind the repeal, which has support from both Obamacare opponents and top unions who said the tax would have cost businesses more money and negatively impacted employee health care.
“This is a huge lift off the backs of working people,” Kelly said ahead of Wednesday’s vote. “If they receive their healthcare through their employer, we want to make sure it stays safe for them.”
The tax would not have taken effect until 2022.
The U.S. Senate is expected to vote on the measure soon.