Reps. Joe Courtney (D-CT) and Tom Cole (R-OK) are currently circulating a bipartisan sign-on letter that will be sent to the members of the Supercommittee opposing the capping or eliminating the federal income tax exclusion for employer-provided health insurance benefits. The letter, addressed to the Joint Select Committee on Deficit Reduction, states, “We write today to raise concerns about imposing new taxes on health benefits as part of debt reduction proposals. Efforts to cap or to eliminate these tax exclusions would have far-reaching consequences that would not only reduce health coverage for millions of Americans, but would also increase long-term federal spending obligations.”
Representatives Courtney and Cole are actively seeking additional House members to join them on their letter, so please consider urging your representatives to do so today.
During the debate on health care reform, 193 House Democrats signed a similar letter—also led by Rep. Courtney—in opposition to a tax on so-called high cost health insurance plans. NAHU is extremely supportive of the pair’s efforts, as our association has for decades held the position that voluntary and employment-based health benefits provide many economic benefits to our nation’s employers and workforce. NAHU would oppose any attempt to alter the current tax treatment of employer-sponsored health insurance, including proposals to cap the exclusion or replace it with either an individual income tax credit or deduction. NAHU does support equity in the tax treatment for individuals and families purchasing health insurance coverage on their own in the individual market and equal tax treatment for the self-employed, but not at the expense of the existing employer-coverage income tax exclusion.