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On Feb. 9,
President Barack Obama released his proposed fiscal year (FY) 2017 budget, which contains a number of items of interest to HR professionals.
Specifically, the budget includes several tax and benefits proposals encouraging employee retirement savings programs and efforts to modify the unemployment insurance program. In addition, the budget continues to include funding for citizenship and immigration services, including the E-Verify program to assist U.S. employers with maintaining a legal workforce. In regards to health care, the budget includes a new proposal to modify the Affordable Care Act’s (ACA’s) excise tax, also known as the “Cadillac” tax, on high-value employer-provided health plans to account for regional differences in health care costs. (As
previously reported, the implementation of the ACA’s excise tax has been delayed for two years until 2020.)
The budget also includes a number of labor and employment proposals, including an initiative to help expand state paid-family-leave and medical leave programs, similar to programs in California, New Jersey and Rhode Island.
Read SHRM’s synopsis of all HR-related proposals included in the FY 2017 budget.
The FY 2017 budget policy proposal will require action by Congress and, in the upcoming months, congressional committees with jurisdiction over budgetary issues will hold a series of hearings on the president’s budget proposal. In the meantime, Republican congressional leaders have already voiced general opposition to the overall budget plan. Furthermore, Republican leaders in the House and Senate have indicated that they plan to focus this year on developing tax reform proposals that may provide a basis for future legislation.
As Congress considers the FY 2017 budget, SHRM will continue to advocate in support of proposals that will strengthen and improve employer-provided benefits, including full repeal of the ACA’s excise tax. Stay tuned to future editions of HR Issues Update for congressional developments.
In This Issue
Capitol Hill Update
Fiscal Year 2017 Budget Developments
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