Obama signs off on $1.1 trillion tax, spending bill
President Barack Obama signed a $1.1 trillion funding bill into law Dec. 18 that will keep the government running through Sept. 30, 2016, and delay the Affordable Care Act's Cadillac Tax by two years, according to NPR.
Early Friday morning, the Senate approved the Omnibus Appropriations Act, which includes approximately $700 billion in tax breaks, by a vote of 65 to 33, and the House did so by a vote of 316 to 113.
Signing of the spending bill into law not only prevents a government shutdown but also puts certain policy provisions into play, including the first major changes to the ACA.
Three revenue-generating taxes under the ACA have been frozen for two years, including the health insurance tax, the medical device tax and the Cadillac tax.
Despite President Obama's support for the Cadillac tax, the White House said it was not a deal-breaker for the president. Democrats in Congress in particular wanted to see the Cadillac tax delayed to help improve union support ahead of the election year, according to The Hill.
According to estimates from the Congressional Budget Office, a two-year freeze on the Cadillac tax will cost Washington $9 billion by the close of 2019. If it ends up being repealed permanently, the CBO estimates the cost would amount to $87 billion in lost revenue by the end of 2025.
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