Insights

This Week on the Hill: House Looks to Repeal ‘Cadillac Tax’

July 15, 2019

Both chambers of Congress will return to action this afternoon. When the House gavels in first, lawmakers will begin consideration of 14 suspension bills out of the Foreign Affairs and Small Business Committees. This includes: (1) a measure amending the Small Business Act to require cyber certification for small business development center counselors; (2) legislation that would mandate an annual report on the cybersecurity of the Small Business Administration (SBA); and (3) a bill requiring the Small Business and Agriculture Regulatory Enforcement Ombudsman create a centralized website for compliance guides. Meanwhile, Senators are expected to resume consideration of pending presidential nominations, starting with the nomination of Peter Phipps to be a Circuit Judge for the Third Circuit Court.

Later this week, Democratic leadership is expected to queue up a bill that would repeal the Affordable Care Act's (ACA) so-called "Cadillac tax." Designed to penalize employers that provide their workers with expensive benefits, the 40 percent excise tax has been a target for repeal by lawmakers on both sides of the aisle. By passing the bill under suspension of the rules, House Democrats can circumvent the need to offset revenue – a requirement that has thwarted action on the Cadillac tax for years. Assuming the bill does pass the lower chamber, it remains to be seen if the House bill will be taken up in the Senate without an offset.

In addition to the suspension bills slated for consideration this week, the House is also expected to consider a bill out of the Education and Labor Committee that would raise the minimum wage to $15 per hour by 2025. Other notable legislation on the House floor this week includes a measure authorizing appropriations for U.S. intelligence operations and a resolution holding Attorney General William Barr and Commerce Secretary Wilbur Ross in contempt of Congress for failing to comply with subpoenas issued by the Committee on Oversight and Reform.