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It’s Time To Repeal The “Cadillac Tax” On UPS Teamsters’ Health Care


Last month, a showdown in Congress ended with Republican lawmakers withdrawing their bill to repeal and replace the Affordable Care Act. As the battle over healthcare reform rages on in Washington, DC, UPS Teamsters who enjoy some of the best employer-provided health benefits in the country remain threatened by punitive taxes on their health insurance.

Known as the “Cadillac Tax,” the 40 percent excise tax on high-quality health plans is the only tax the Republican plan – called the American Health Care Act (AHCA) – left virtually untouched while it repealed taxes on the wealthy, insurance companies, corporations, and pharmaceutical companies. The Republican plan only calls for a delay of the “Cadillac Tax” on workers’ health care.

“Congress should be looking for ways to strengthen the middle class instead of promoting policies that will ultimately take money from their hard-earned paychecks and reduce, and make more costly, the health care benefits they receive,” Teamsters General President Jim Hoffa wrote.

While the AHCA was defeated last month, there’s little doubt that Republicans will continue their efforts to dismantle the Affordable Care Act. But without a full repeal of the “Cadillac Tax,” UPS Teamsters – as well as many other union members – face heavy taxes that will undermine their insurance coverage and their wages.

“Our members at UPS are among the hardest working in America,” said Teamsters Package Division Director Sean O’Brien. “They, along with countless other union workers in this country, deserve the best health care possible and they should not be punished for having good insurance. The ‘Cadillac Tax’ penalizes UPS workers for the strong benefits that our union has secured for them, and that’s wrong.”

The Teamsters will oppose any health care legislation in Congress that doesn’t eliminate taxes on working families’ insurance coverage. UPS Teamsters have fought hard for good benefits – we won’t stand for regressive policies that hurt workers while the wealthy get treated to more tax cuts.