Today, Rep. Scott Peters (CA-52) voted against repealing the “Cadillac tax,” because it did not include replacement revenue, corresponding cuts to other spending, or another way to rein in healthcare costs for millions of Americans.
The Cadillac tax is a 40 percent tax on high-cost health insurance plans, enacted as part of the Affordable Care Act, to help offset the cost of expanding coverage. Twice delayed, the Cadillac tax is slated to go into effect in 2022. This bill waives the PAYGO rule, which requires any increase in spending to be offset by higher taxes or cuts to other spending.
“I support the ability of workers throughout the country to continue to have access to high-quality health plans. In fact, I am a co-sponsor of this legislation, which would fully repeal the Cadillac tax. After last year’s enactment of the destructive Republican tax bill, however, the national debt is now more than $22 trillion. Full repeal of the Cadillac tax without an offset would reduce federal revenues by nearly $200 billion over 10 years.
“I fully expected that the Ways and Means Committee would be given the chance to find alternative revenue or offsets, but they have been denied that opportunity. House rules also denied us the opportunity to offer pay-fors as amendments. That left us to cut health care dramatically or fund it through borrowing. Neither is a responsible course. Therefore, despite being supportive of the policy, I could not support passage in its current form,” said Rep. Peters.
In 2018, Rep. Peters was named a Fiscal Hero by the Campaign to Fix the Debt, a non-partisan group affiliated with the Committee for a Responsible Federal Budget. He was named to the Budget Committee earlier this year, where he advocates for smart and fiscally responsible policy decisions. High debt levels decrease budget flexibility, increase the chances of a financial crisis, and shrink the economy. In 2017, he voted against the Republican tax bill, which is projected to add $1.5 trillion to the national debt.