Agreement to Fund Government Delays Three Health Care-Related Taxes

Lawmakers in the Senate and the House have struck a deal on a continuing resolution to end a brief shutdown and fund the government through February 16, 2018. The continuing resolution also delays several taxes related to health care. Specifically, it addresses three taxes created by the Affordable Care Act: the medical device tax, the “Cadillac tax,” and the health insurance tax. Division D of the funding bill outlines the details of these delays: Medical Device Tax. This is a 2.3 percent excise tax levied on the sale of medical devices such as pacemakers, stents, catheters, and artificial joints at the manufacturer or importer level. A two-year delay of the tax expired on December 31, 2017, and the continuing resolution reestablishes that delay through December 31, 2019. Cadillac Tax. This is a 40 percent excise tax levied on health insurance plans if their value is above a certain threshold, and is designed to tax high-end employer-sponsored health plans. This…

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