House Dems, GOP unite to repeal Obama health care tax

July 17, 2019 - 4:11 pm

WASHINGTON (AP) — House Democrats and Republicans are joining in a rare show of unity, voting overwhelmingly to repeal an unpopular tax on generous health insurance that's a symbol of former President Barack Obama's signature health care law.

The "Cadillac tax" has never gone into effect, since lawmakers kept delaying it. Wednesday's 419-6 vote increases chances that the Senate will follow the House, going for a full repeal.

Beginning in 2022, the tax would slap a 40% levy on the value of health insurance plans above roughly $11,000 for single coverage and $30,000 for family policies.

The idea was to help control costs, and repeal would add $193 billion to the federal deficit.

A broad coalition of business groups and unions pushed to kill tax, while policy experts mounted a lonely defense.