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Cadillac Tax Initially Will Have Limited Impact
Center on Budget and Policy PrioritiesLink to more items from this source
Oct. 15, 2015
"Only 4 percent of people with employer-sponsored coverage will be enrolled in plans whose projected costs exceed the thresholds in 2018, the Treasury's Office of Tax Analysis estimates. Even this figure overstates the tax's effect, however, since the tax applies only to the portion of plan costs over the thresholds. That's just 1 percent of plan costs in 2018, Treasury finds.... These estimates are smaller than those at the time when Congress was considering the excise tax in 2009 and 2010.... The enacted version of the tax raised the thresholds and adjusted them to reflect the age and gender composition of a firm's workforce. Also, health costs have grown less rapidly than previously projected."

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