Dems Warn Against ObamaCare Tax Delays

Some Democrats are raising concerns that an ObamaCare tax trade-off taking shape in Congress this week could whet the appetite of other industries looking to chip away at the law.

House and Senate leaders say they are inching closer to a year-end tax package — likely wrapped into the governing spending bill — that would pause both the healthcare law’s “Cadillac tax” and its medical device tax for two years.

Delaying the taxes would deliver a major win to labor groups and the medical device industry, respectively, after years of heavy lobbying against the provisions.

And even as most supporters of the law say they’d support a two-year delay of both taxes, some Democrats say they’re worried that it will only empower opponents to chip away at the law — jeopardizing its long-term fate.

“I’ve always been the position that the medical device tax should be paid for, in part because it sits alongside a broader set of gives for other industries,” Sen. Chris Murphy (D-Conn.), who leads Democratic messaging for ObamaCare, said Thursday. “It’s harder to get the medical device tax by itself.”