In a bit of poetic justice, a tax named after an automobile brand got a boost from contract negotiations in the Motor City.
That new federal levy, officially called an excise tax on high-cost health coverage, is better known as the “Cadillac tax.” Under this provision of the Affordable Care Act, employer-sponsored health coverage worth more than $10,200 per year to an individual or $27,500 per year to a family will be subject to a 40 percent tax on the amount that exceeds the threshold. The tax doesn’t take effect until 2018, and as we get closer to that date, pressure in Congress is building to repeal it.
