TCU Supports Bill to Repeal ACA Excise Tax on Employer Health Plans Sooner Rather Than Later

This week in a letter, International President Buffenbarger urged Congress to repeal the 40 percent excise tax on high-value employer-sponsored health care benefits and for members to support Rep. Courtney’s bill to repeal the excise tax and further urged members to become a co-sponsor on the bill.  Rep. Joe Courtney a critic of the excise tax plans to introduce a Bill later this month. A large number of AFL-CIO affiliate unions, including TCU, have signed on in support of Rep. Courtney’s Bill. (See list of Unions).

The excise tax “will eventually cause union negotiated health plans to be taxed as Cadillac plans” said Scardelletti. We believe it is important that Congress pass legislation this year, rather than wait until just before the effective date of the excise tax.  Over time, continued medical inflation, the aging workforce, new medical technologies and drug therapies together with the ACA’s benefit mandates will make it more difficult for employers to provide affordable health care benefits to employees, and the unstoppable increase in health care costs will eventually cause employer-sponsored plans to fall under the tax.  That, in turn, will result in the burden of the excise tax falling on a significant number of our members and their families.  “We urge Congress not to miss this opportunity to address a serious problem with the ACA, and we look forward to working with lawmakers to enact legislation,” said Scardelletti.

Click here to read the supporting letter from the IAM to Congress.

Labor Organizations Supporting the Courtney Bill to Repeal the Tax on Health Benefits


Alliance for Retired Americans (ARA)

American Federation of State, County and Municipal Employees (AFSCME)

American Federation of Teachers (AFT)

Communications Workers of America (CWA)

International Association of Fire Fighters (IAFF)

International Association of Machinists and Aerospace Workers (IAM)

International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers (IBB)

International Union of Operating Engineers (IUOE)

International Union, United Automobile, Aerospace
and Agricultural Implement Workers of America (UAW)

Laborers’ International Union of North America (LiUNA)

National Education Association (NEA)

Transportation Communication Union/IAM

United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting
Industry of the United States, Canada & Australia (UA)


United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial
& Service Workers International Union (USW)