It would be best if Congress were to replace the “Cadillac” tax with a simple and clear limitation on the tax preference for employer-paid premiums, as is called for the House GOP’s “Better Way” health plan. That approach is fairer and more transparent. The limits can also be set to raise a more realistic level of revenue over time.
But until Congress is ready to replace the “Cadillac” tax with something better, they should leave it in place. No, it’s not ideal. Yes, it was passed as part of the ACA, with all of the problems that come with that. But it is close enough to what would be ideal that it would be foolish to get rid of it without replacing it, despite the unpleasant way it was conceived and enacted by Congress.