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Coalition letter urges Congress to include language in any year-end legislative package to extend the suspension of the Health Insurance Tax (HIT)

On October 27, 2016, the Stop the HIT Coalition sent a letter to House and Senate Leadership urging Congress to include language in any year-end legislative package that would extend the one-year suspension of the Health Insurance Tax (HIT).

Dear Majority Leader McConnell, Minority Leader Reid, Speaker Ryan, and Minority Leader Pelosi,

As members of the Stop The HIT Coalition, we urge you to include language in any year-end legislative package that would extend the one-year suspension of the Health Insurance Tax (HIT).

The Stop The HIT Coalition comprises the nation’s small business owners, their employees and the self-employed, who together represent hundreds of millions of Americans negatively impacted by the HIT.

As you know, the HIT is a harmful tax levied on America’s small business owners, low and middle income families, seniors and young workers struggling to afford health insurance. Indeed, more than half of the entire tax is paid by those with incomes between $10,000 – $50,000, and estimates show the tax will cost small businesses and families $5,000 in higher premiums over a decade.

Intended as a way to pay for the expansion of health care, the HIT has in reality crippled small businesses, forcing them to choose between cutting jobs and cutting benefits. This is a terrible position to put our small businesses in as we depend on them to help drive economic growth in America.

The pain of the HIT comes at a time when small employer benefits are already under siege. A recent study by the Employee Benefits Research Institute (EBRI) found profound consequences on health care coverage. Between 2008 – 2015:

  • Coverage dropped by 36% among small businesses with fewer than 10 employees;
  • A 26% decrease for small businesses with 10 to 24 employees;
  • A 10% reduction in coverage for employers with 25 to 99 employees.

Congress stood on the side of small businesses last year when Members on both sides of the aisle – nearly 300 Republicans and over 100 Democrats – voted to delay the impact of the HIT for one year. This was a welcome and needed first step, and we thank Congress for this important vote. However, we are extremely concerned about the HIT returning in 2018, particularly as it is expected to have an even higher impact on premiums at that time.

We hope you will again consider including language extending HIT relief in any end of year legislative package. Hardworking Americans need the certainty and security of additional relief from this harmful tax.


American Farm Bureau Federation

American Hotel & Lodging Association

American Rental Association

American Supply Association

Associated Builders and Contractors

Auto Care Association

National Association of Health Underwriters

National Association of Wholesale-Distributors

National Club Association

National Federation of Independent Business

National Lumber and Building Material Dealers Association

National Restaurant Association

National Retail Federation

National Roofing Contractors Association

National Small Business Association

Petroleum Marketers Association of America

Printing Industries of America

Retail Industry Leaders Association

Specialty Equipment Market Association

Society of American Florists

U.S Chamber of Commerce

Click here to view the letter.