When Congress passed the Affordable Care Act, they gave employers all sorts of carrots and sticks to boost coverage. But Congress wanted to control overall costs, too, and didn’t want employers being too generous. So they imposed a new tax on so-called “Cadillac” plans. Technically, it takes the form of a 40% penalty on annual premiums exceeding $10,200 for an individual or $27,500 for a family. But everyone knows what the term “Cadillac” plan means, even if Cadillacs have nothing to do with the cost of healthcare.
That got us to thinking . . . if the folks in Washington think a tax on Cadillac plans is a good idea, why stop there? What other sorts of taxes could they think of imposing?Continue reading →