NAM Issues Statement on Employee Benefits Tax delay.
Press Release Summary:
In his statement made after Congress released details of its spending bill, which includes one provision to delay Employee Benefits Tax, NAM Chief Economist Chad Moutray said that "the proposed two-year delay of the 40 percent tax on employee benefits provides needed relief" for manufacturers. Moutray cited one NAM study that shows how many middle-class families and manufacturers would be hurt by said tax and urged lawmakers to "continue fighting for a full repeal of this costly measure."
Original Press Release:
Manufacturers: Employee Benefits Tax Delay Provides Needed Relief
Recent NAM Study Shows Virtually All Manufacturers Could Be Impacted
Washington, D.C. – National Association of Manufacturers (NAM) Chief Economist Chad Moutray issued the following statement after Congress released details of its spending bill which includes a provision to delay the Employee Benefits Tax more commonly known as the “Cadillac Tax:”
“As manufacturers continue to identify healthcare expenditures as one of their top business challenges, the proposed two-year delay of the 40 percent tax on employee benefits provides needed relief. Manufacturers have always strived to offer quality employee benefits including health care to their employees. This delay allows manufacturers to continue to achieve that goal.
“Last week, the NAM released a study which shows just how many middle-class families and manufacturers are going to be hurt by this tax. The accelerating nature of the tax would prompt many employers to eliminate benefits such as on-site clinics, wellness programs and health saving accounts.
“Lawmakers on both sides of the aisle and in both houses have shown their understanding of the harm this tax would cause employers, and we urge all members to support the delay and continue fighting for a full repeal of this costly measure.”
Earlier this year, the NAM released a poll that showed a majority of Americans oppose the tax, and this month 90 senators voted to repeal the tax. With virtually every manufacturer being impacted by this tax, manufacturers welcome the delay but urge Congress for a full repeal.
To learn more about the Employee Benefits Tax and its impacts on manufacturers, visit our website www.nam.org/ebt.
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The National Association of Manufacturers (NAM) is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12 million men and women, contributes $2.09 trillion to the U.S. economy annually, has the largest economic impact of any major sector and accounts for more than three-quarters of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.
