When Americans receive their health care coverage through an employer, the cost of that coverage is not treated as taxable income or wages to the employee. In other words, the cost of the coverage is “excluded” from an employee’s taxable income. Some in Congress want to tax employees on the cost of their health care benefits if the cost of coverage exceeds new thresholds set by Congress. This tax on employees is called “capping the exclusion.”
More than 181 million Americans – including retirees, low- and moderate–income families, public safety officers, clergy, small business owners – currently depend on employer–sponsored health coverage. Capping the exclusion directly threatens this coverage.
Don't Tax Employee Health Care One Pager (February 8, 2017)
Infographic: "Capping the Exclusion" vs. the "Cadillac Tax" (February 8, 2017)
The Alliance to Fight the 40 | Don’t Tax My Health Care is a broad-based coalition comprised of businesses, patient advocates, employer organizations, unions, local governments, health care companies, consumer groups and other stakeholders that support employer-sponsored health coverage. This coverage is the backbone of our health care system and protects more than 181 million Americans. The Alliance seeks to repeal the 40% “Cadillac Tax” on health benefits and work with Congress and the Administration to prevent increased income taxes on workers, families and retirees who rely on employer-provided health coverage. The Alliance is committed to ensuring that employer-sponsored coverage remains an effective and affordable option for working Americans and their families.