'Cadillac Cash'.

• Author: Acunto, Steve

Way back when I did some boxing--I was a welterweight then--I learned the expression "Cadillac Cash." It referred to the monies a new contender or champ would spend from his first real earnings on a new Cadillac. This was well before Mercedes invaded the US luxury market. The monies usually wound up being largely wasted, since the standing was short lived at best and the money, gone fast with it. When the U.S. House of Representatives passed legislation to repeal the Affordable Care Act's (ACA) 40% excise tax or "Cadillac" tax, I could not help but find a way, even a tenuous one, of linking the two. Reps. Joe Courtney (D-Connecticut) and Mike Kelly (R-Pennsylvania) were sponsors of H.R. 748, the Middle Class Health Benefits Tax Repeal Act. Congress repeatedly acknowledged problems with the "Cadillac" tax and most recently delayed the tax until 2022. Starting in 2022, the ACA will impose a 40% tax on health benefits that exceed an established annual cost. The Alliance to Fight the 40 predicts that the tax will lead to a reduction in employer--sponsored coverage and an increase in employee cost sharing--the exact opposite of the ACAs stated goals. This will be harmful to middle-income Americans who'd prefer a real Cadillac --an unaffordable luxury. And for the Federal government, where does the money go? Big I's Charles Symington, senior vice president of external, industry & government affairs said-and we agree with him--"This harmful tax will not only hit many of our small business members and their clients starting in 2022, but over time will affect more and more individuals because the tax threshold is tied to a very slow measure of inflation. This snowball effect will do irreparable damage to the employee benefits marketplace." Keep punching guys.... Congratulations to the volunteer team that is keeping NYSAIFA vital for life agents and financial services professionals. The new Officers and Board of Directors, whose terms expire on December 31, 2020, take over at a time of intense pressure on the industry and its clients, according to NYSAIFA NYS...