Three Obamacare taxes have been put on ice — for now — by the deal that ended the shutdown of the federal government.
The stopgap spending deal reached by Congress on Monday suspended imposition of the three taxes: the so-called Cadillac tax on high-value health plans, a 2.3 percent levy on medical devices and the health insurance tax.
The health insurance tax on insurers, which was projected to collect more than $14 billion in revenue this year, was suspended for one year. It now is set to take effect in 2019.
Elena Tompkins, executive director of a group opposing the tax, Stop The HIT, said the suspension of the levy is "an important step that will help provide much-needed relief and certainty to 29 million small businesses and their employees next year."
"However, small businesses are bearing the costly burden of the HIT and need immediate, urgent relief," Tompkins said. "We urge Congress to continue to advance solutions that will provide relief from the HIT in 2018 and protect millions of small businesses from this misguided tax."
The medical device tax was delayed for two years, until January 2020, after having previously been extended. The Congressional Budget Office had estimated that a total of $3.27 billion would have been collected from device makers this year and in 2019 if the tax were in effect.