We are very excited to announce that Congress and the President have passed the Federal spending bill which delays several taxes, including:
- Two year delay of the Cadillac Tax (originally effective 2018) pushes the effective date to tax years beginning after December 31, 2019. The bill also allows the payment of the tax to be deductible by businesses.
- One year suspension of the Health Insurance Tax (originally effective 2014). The tax will not apply for calendar year 2017, which should result in less of an increase to group health insurance premiums for 2017.
- Two year postponement of the 2.3% Medical Device Tax (originally effective 2013). The tax imposed under this provision will not apply to sales during the period beginning on January 1, 2016, and ending on December 31, 2017.