Big ACA Middle-Class Tax Increase in Mass, $87K for Small Biz Employee

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Pioneer is releasing a new brief estimating the impact of the so-called “Cadillac tax,” targeted at high cost insurance plans, contained in Obamacare.

The report finds that given our high premiums, a majority of workers in Massachusetts will pay the tax in 2018. On a more micro level, the report examines the impact of the excise tax on a small business employee, a police officer, and a teacher. The future looks expensive!

For the 10 years following the introduction of the tax:

  • Business employee on a family plan will owe $86,905 in additional taxes.
  • Police officer on a family plan will owe $53,907 in additional taxes.
  • Teacher on an individual plan will owe $20,807 in additional taxes.

Remember this is all on top of paying for their insurance premium as well. The tax does not discriminate and will add costs for the lower-middle class, the upper-middle class and everyone in between. Any profession that has robust healthcare benefits — construction workers, teachers, police, state and local public workers, and a majority of those on private insurance — will be immediately and significantly impacted by this tax.

Read the full brief for more details, and share it with anyone that is interested in learning more about the impact of the Affordable Care Act on those in Massachusetts.

Find me on Twitter: @josharchambault

2 replies
  1. Frank T
    Frank T says:

    Page 2 of your report indicates that “…a majority of individuals and families on private insurance in the Commonwealth will start to pay the Cadillac Tax to the federal government in 2018.”

    But the Cadillac Tax is not imposed on individuals. It is assessed on insurers and employers (see Section 9001(c)(2) of the ACA). While insurers and employers may pass the costs to employees, Pioneer’s characterization of the tax as a direct tax on individuals is grossly inaccurate.

  2. Just Asking
    Just Asking says:

    So the Feds have the power to force you to buy one of their plans that you didn’t ask for in the first place and then they turn around and penalize you with a hefty so called tax. Screwed if you do and screwed if you do not. Is this process even legal?

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