Tax Policy Center

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T18-0217 - Repeal Cadillac Tax, Premiums Revert to Pre-Cadillac Tax Levels, Baseline: Current Law, Distribution of Federal Tax Change by Expanded Cash Income Percentile, 2028

Impact on the distribution of federal tax burden relative to current law of repealing the Affordable Care Act's excise tax on high-cost health plans ("Cadillac tax").  Health insurance premiums are at post-Cadillac tax levels under the baseline and at pre-Cadillac tax levels under the proposal with taxable wages adjusting to keep total compensation fixed. This table shows the impact by income percentile for 2028. Baseline is the law in place for 2028 as of 10/29/2018. For more information on TPC’s baseline definitions, see:

October 29, 2018