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HIT Tax Takes Aim at Working Families and Small Business Owners

The Patient Protection and Affordable Care Act (ACA) turns six today. One of the goals of the law was to make health care more affordable for small businesses and low and middle income Americans. Unfortunately, the law included the Health Insurance Tax (HIT), a multi-billion dollar tax aimed squarely at those very groups.

To mark the sixth anniversary of the ACA, the Stop the Hit Coalition released an infographic detailing how the poorly constructed tax unfairly targets low and middle income families.

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It is estimated that approximately half of the premium increase from the HIT will be paid by those with incomes between $10,000-$50,000. Only a small fraction will be felt by the most affluent.

Further, families are expected to take a hit to the tune of $5,000 in higher premiums over the next decade. At the same time, families will forego access to programs that improve care quality and lower costs, as employers are forced to make cuts to investments in health programs, wellness initiatives and disease management tools.

The one piece of good news on the anniversary of the ACA is that Members of Congress on both sides of the aisle recognize the need to repeal this unfair and harmful tax. At the end of 2015, over 100 Democrats joined with nearly 300 Republicans to suspend the impact of the HIT for one year.

This is a welcome and important first step, however Americans need the certainty and relief of full repeal—particularly given that Americans are poised to face even higher premiums as a result of the HIT in 2018 and beyond.

Join us in calling on Congress to fully repeal the HIT–a cause truly worth celebrating!