The Cadillac Tax prepares to claim another scalp:
Obamacare’s looming “Cadillac tax” on high-cost health plans threatens to hit one in four U.S. employers when it takes effect in 2018 — and will impact 42 percent of all employers by a decade later, according to a new analysis.
And many of those employers will be subject to the heavy Obamacare tax because they offer popular health-care flexible spending accounts to workers, which, ironically, are designed to reduce the income tax burden to those employees.
As a result, the co-author of the analysis expects the health FSAs to start being phased out and “largely disappearing” over time by companies looking for reduce their exposure to the Cadillac tax.
FSAs allow consumers to make their own decisions about how best to spend their own money, with Washington providing a tax incentive to make smart decisions. Ideally, Washington would stay out of these matters entirely, but you and I both know that’s just not possible in the current (1933-???) political climate.
The problem then in today’s climate is that FSAs empower the consumer rather than the bureaucrat (of the government or semi-private variety), so it’s no surprise that ♡bamaCare!!! contains enough hidden landlines to ensure their eventual elimination.
That Means It’s Working™