Letter to the Hon. Jack Lew, Secretary of the Treasury - Help Workers on the Range Maintain Affordable Health Care

Letter

Dear Secretary Lew:

I am deeply concerned about the health of the American steel industry and our steelworkers. Too many Americans are losing their jobs due to the unfair trade practices.

Steelworkers in Minnesota and across the country are being harmed by foreign dumping and overproduction. The U.S. steel industry has faced plant idlings that have resulted in thousands of layoffs or furloughs this year. In Minnesota, about 200 workers at Mesabi Nugget lost their jobs in May when Steel Dynamics Inc. decided to idle operations for at least two years. In February, Magnetation LLC filed for bankruptcy protection. In May, it announced the layoffs of 40 employees in Minnesota. In July, Cliffs Natural Resources United Taconite announced the idling of a mine and plant resulting in 375 layoffs.

I supported the Trade Adjustment Assistance Reauthorization of 2015 (Public Law 114-27), which provides critical workforce training, income assistance and health care tax credit benefits. These benefits are vital to help trade-affected workers. The Health Care Tax Credit (HCTC) provides a 72.5 percent tax credit against the cost of their health care premiums for TAA-certified trade-affected workers and retirees over 55 years old whose pension plan has been taken over by the Pension Benefit Guarantee Corporation. The HCTC was allowed to expire at the end of 2013. Public Law 114-27 reinstated the HCTC through 2019 and made it retroactive for 2014.

In order for the trade-affected steelworkers in Minnesota and around the country to be able to take advantage of this extremely valuable tax credit, the U.S. Treasury Department and the Internal Revenue Service need to publish the required guidance and regulations as soon as possible. These taxpayers need to know if they are eligible for an advance payment that lowers the cost of their out-of-pocket monthly health care premium payments. The retroactive refund for the HCTC for 2014 would come as needed relief for families struggling to make ends meet as a result of a layoff.

Additionally, the Trade Adjustment Assistance Reauthorization Act of 2015 (Public Law 114-27) calls for the U.S. Departments of the Treasury, Health and Human Services and Labor and the Pension Benefit Guarantee Corporation to conduct a program of public outreach regarding the health care tax credit. I strongly support this effort and want to help work towards its success. Please provide my office with information on what steps you are taking to make sure that those who are eligible for this important benefit know how to apply for it.

I understand that the Treasury Department is currently drafting implementing regulations. I ask that you issue these regulations or guidance as soon as possible.

Thank you for your consideration.

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