The U.S. Chamber of Commerce urged Senate Republicans to repeal ObamaCare's "Cadillac Tax" on high-cost employer insurance plans in its healthcare replacement bill.
The tax isn't slated to go into effect until 2020, and the current Senate draft would further delay its implementation until 2026 to comply with the chamber's budget rules.
But the Chamber of Commerce and 28 other professional organizations want the Senate to scrap the tax permanently.
"As senators work to revise and amend this legislation to repeal and replace the [Affordable Care Act], we encourage you to protect the employer-sponsored system by fully repealing the ACA’s 40% 'Cadillac Tax' and refrain from imposing any new taxes on employee health care benefits," the groups wrote in a letter to senators Tuesday.
The tax imposes a 40 percent levy on employer health plans with annual premiums exceeding $10,800 for individuals.
The tax had been expected to raise a significant amount of revenue that could help pay for other ObamaCare provisions.
The Senate GOP bill repeals most other ObamaCare taxes.