They might want to think about changing the name of Obamacare's "Cadillac Tax" to a "Ferrari Tax."
A new report that details the effects of a looming Obamacare excise tax on employer-sponsored health plans highlights the big bucks large companies will have to dole out starting in 2018 and how employees might end up getting stuck with much of the costs if bosses blanch at the tax bill.
The American Health Policy Institute analysis found that big companies subject to the tax will pay an average of $2.1 million per year from 2018 to 2024—equal to $2,700 per employee. And if companies adjust workers' wages to offset reductions in health benefits due to the tax, more than 12 million employees will face an average of $1,050 in higher payroll and income taxes per year.
"As these numbers show, this tax is going to impose real costs on both employees and employers alike," the group's report said.