NAW Supports Continuing Resolution, Obamacare Tax Relief

January 17, 2018

NAW sent a letter to all Members of the US House of Representatives in support of a short-term funding bill to keep the federal government open through February 16th.  The “continuing resolution” or “CR” includes a pause for 2019 in Obamacare’s health insurance tax (“HIT”) and extends the current delay in the 40% excise tax on high-cost employer-sponsored health plans (“Cadillac Tax”).

For your information, NAW’s full letter appears below:

To all Members of the U.S. House of Representatives:

We write on behalf of the National Association of Wholesaler-Distributors (NAW) to express support for the Continuing Resolution (“CR”) that will be considered by the House tomorrow.

NAW is the “national voice of wholesale distribution,” an association comprised of employers of all sizes, and national, regional, state and local line-of-trade associations spanning the $5.6 trillion wholesale distribution industry that employs more than 5.9 million workers in the United States. Approximately 40,000 enterprises with places of business in all 50 states and the District of Columbia are affiliated with NAW.

NAW members are particularly pleased with the treatment the pending CR affords taxes enacted with the Affordable Care Act. Specifically, NAW-affiliated employers are pleased that the CR includes a pause in 2019 in the application of the annual fee on health insurance providers (the “health insurance tax” or “HIT) and a two-year extension of the delay now in place for the 40% excise tax on high-cost employer-sponsored health plans (the “Cadillac Tax”). Both of these taxes (and the medical device tax also appropriately delayed in the pending CR) contribute to higher health care and coverage costs for employers, workers and their families, and the full and permanent repeal of both have been and remain high priorities on NAW’s legislative agenda.

The inclusion the pending CR of provisions further delaying these ACA taxes is another important step toward their eventual repeal.   For these reasons, and to avert a federal government shut down by the end of this week, we urge you to vote in favor of the pending CR and advise that votes taken on or in relation to it will be considered key votes for the 115th Congress.

Thank you for your consideration of NAW’s views.