Senate bill would repeal most ObamaCare taxes, delay Cadillac tax

Senate bill would repeal most ObamaCare taxes, delay Cadillac tax
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The Senate draft healthcare bill unveiled Thursday takes a similar approach to ObamaCare's taxes as the House bill — repealing most of them with the exception of the Cadillac tax.

The Cadillac tax, which applies to high-cost health insurance plans, would be delayed until 2026 in both the Senate and House bills. The tax is unpopular with both Republicans and Democrats and has never taken effect. However, the tax has been estimated to raise a significant amount of revenue that could help pay for other provisions in the bills.

Other ObamaCare taxes are done away with in both the Senate and House healthcare bills. 

Senators had been weighing keeping some of ObamaCare's taxes for longer than the House bill in order to help pay for their measure. But the Senate proposal only makes slight changes to the implementation dates of some of the taxes' eliminations. For example, the prescription drug tax would be repealed starting in 2018 under the Senate plan but would be repealed starting in 2017 in the House bill.

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The elimination of other ObamaCare taxes would take effect at the same time in both the House and Senate bills. In both bills, the net investment tax would be repealed retroactively to the start of 2017, and the Medicare surtax would be repealed in 2023. These two taxes apply to taxpayers with high incomes.

Both bills also would effectively eliminate ObamaCare's individual and employer mandates retroactively to 2016.

Americans for Tax Reform, the group led by anti-tax crusader Grover Norquist, was pleased that the Senate bill would eliminate many ObamaCare taxes.

"Obama promised no tax hikes on anyone earning less than $250,000 — that was a lie," Norquist said. "Taxes increased. Healthcare costs increased. ObamaCare failed. By its own promised goals, it failed. It is time to repeal failure and reform healthcare to protect consumers, not bureaucracy.” 

But Democrats immediately panned the Senate GOP plan as a tax cut for the wealthy.

"After all the talk about throwing out the House bill and starting fresh, the Senate proposal still slashes Medicaid to fund big tax breaks for the wealthy, raises costs and guts protections for people with pre-existing conditions," said Sen. Ron WydenRonald (Ron) Lee WydenSenate Dems hold floor talk-a-thon against latest ObamaCare repeal bill Overnight Defense: Senate passes 0B defense bill | 3,000 US troops heading to Afghanistan | Two more Navy officials fired over ship collisions Finance to hold hearing on ObamaCare repeal bill MORE (Ore.), the top Democrat on the Senate Finance Committee.