April 20–21 Metro Washington, DC
The House and Senate in late December overwhelmingly approved—and President Obama signed—bipartisan omnibus
spending legislation to fund the government
for the remainder of fiscal year 2016. The
package also makes a number of tax extender
provisions permanent and extends others for
either two or five years. While the final package is largely noncontroversial, it also suspends or delays three different taxes dealing
with the Affordable Care Act.
Medical Device Tax Suspended
Under the ACA, beginning in January
2013, manufacturers of medical devices were
required to pay a 2.3% excise tax on prod-
ucts ranging from surgical tools to bed pans.
Opponents of the tax argued that it raises the
effective tax rate for manufacturers, thereby
reducing resources to create and retain jobs
and invest in new product development.
The omnibus package provides for a two-
year suspension of the medical device tax
until 2018, exempting sales during calendar
years 2016 and 2017.
Cadillac Tax Delayed Until 2020
One of the most controversial funding
mechanisms of the ACA, the so called “Cadil-
lac” tax, imposes a 40% excise tax on high-
cost, employer-sponsored health benefits.
While this tax is paid by insurers and employ-
ers, opponents of the tax argue that because
of the tax, families will see less robust plans
offered by their employers. While the tax was
FCC Issues Rulings Regarding
Republican Congress Previews
Major ACA Changes in 2017
New York State and New York City
Prohibit Transgender Discrimination
Published for members of the American Staffing Association 2016 n NO. 1
YOUR DIGEST OF LEGAL NEWS FOR THE INDUSTRY
Continues on page 6
FY16 Spending Legislation
Suspends Some ACA Taxes
Bill Gets Bipartisan Support, Extends WOTC Credits