On the heels of the Republican National Convention in Cleveland, members of the Democratic party have gathered in the City of Brotherly Love to nominate the first female candidate for President of the United States. In a city that has a rich political history, as the birthplace of the Declaration of Independence and U.S. Constitution, it is also home to a broad swath of small businesses from restaurants to boutiques, tech start-ups and construction companies.
As party leaders outline an agenda focused on working together and fighting for children and families, we wanted to explore the impact of the Health Insurance Tax (HIT) on Pennsylvanians. The HIT—a multi-billion-dollar tax imposed on health insurance premiums for working families, seniors, small businesses and Medicare and Medicaid beneficiaries—has made healthcare less affordable for countless hardworking Americans.
Pennsylvania, home to one million small businesses that employ 2.4 million people, desperately needs relief from the HIT. Absent full repeal, those businesses will face a crippling $500 increase in premiums per employee annually, stifling their ability to offer employee benefits, grow revenue streams, hire additional employees or update essential infrastructure and equipment.
Indeed, estimates show the HIT could cost the Keystone State between 2,500 – 4,700 jobs by 2023, and could result in a drop in the state’s GDP by nearly $800 million within 10 years.
Small business owners bearing the negative impact of this tax are urging policymakers across the political spectrum to work together to make HIT relief a priority. With support from a large number of Democrats, Congress took an important first step last year in delaying the impact of the HIT for one year. We urge policymakers to deliver permanent relief by fully repealing the HIT.
As we prepare to elect a new President in November, there is no better way to show the American people that we are fighting for them than by protecting our small businesses – the keystone of American innovation – to promote economic growth throughout the country.