We all know that many employers have concerns about the excise tax set to hit in 2020, so you might think that the excise tax reform bill introduced last month by Rep. Charles Boustany, R-La., would be met with unanimous support among Cadillac tax opponents. Not so, says this Business Insurance article. Some worry that the legislation, which would exclude pretax contributions made to employees’ FSAs and HSAs from excise tax calculations, might sidetrack congressional leaders from pursuing employers’ overarching objective: full repeal. But Mercer’s Geoff Manville disagrees, arguing that the business community is still very much aligned in its position that Congress should repeal the excise tax, not just one aspect of it. “The momentum is not on mending the excise tax, but repealing it,” he said. Employers have some breathing room, though, ever since the two-year delay in imposing the tax, from 2018 to 2020. Even so, “in 2017, the odds of repeal go up,” he added, since 300 House members have gone on record in favor of repeal.
Go to full article: businessinsurance.com