Committee For Responsible Federal Budget: Don’t Repeal Caddy Tax Without Replacement

The Committee for a Responsible Federal Budget (CFRB) said Wednesday (Feb. 22) that Congress shouldn't repeal the highly unpopular 40 percent tax on high-cost health plans without a replacement, and suggests instead capping the unlimited tax exclusion for employer benefits, which Congress is considering. The so-called Cadillac tax and limiting the exclusion provide similar policy benefits -- lower spending and increased revenue and wages -- but the cap is more direct, CFRB argues. Economists from both sides of the aisle...