FOR IMMEDIATE RELEASE
Findings implicate that small business owners will hold back hiring in 2013
WASHINGTON, D.C. (November 30, 2012) – Small business owners’ optimism has fallen to July 2010 standards, according to the latest Wells Fargo/Gallup Small Business Index. Despite what appeared to be a trend of improving small business optimism leading into the presidential election, the index fell to -11 in November. These alarming survey results indicate a possible weakening of the U.S. economy.
According to Gallup, the plunge in small business optimism indicates:
“As entrepreneurs, small-business owners tend to be optimistic by nature, and relatively more optimistic about the future than the present. Given this context, owners’ increasing pessimism toward their future not only reflects uncertainty, but also may imply a weakening economy going forward.”
“Small-business owners appear to be uncertain about their future operating environment, and uncertainty is a legitimate reason for them to hold back on new capital expenditures at this time.”
“Another troubling finding is the intention of 21% of small-business owners to reduce the number of jobs at their company over the next 12 months. This suggests the potential for a significantly higher unemployment rate in 2013…”
There are many obstacles facing small business in our current environment, including the uncertainty of the impending fiscal cliff. However, burdensome taxes and regulations on the horizon as part of healthcare reform are holding back progress at the small business level, including the $87 billion Health Insurance Tax (HIT).
The HIT is one of the largest tax increases included in the healthcare reform law and its fees will fall largely on the small business community:
The HIT will impact two million small businesses, 12 million employees and the self-employed who purchase their own policies in the individual market and 26 million employees who are covered by their employers;
Studies show that, on average, the HIT will cost each family about $500 a year or $5,000 in higher premiums over the decade;
The HIT would reduce private sector employment by between 125,000 and 249,000 jobs in 2021; and
The HIT would reduce U.S. real output (sales) in 2021 by between $18 billion and $30 billion.
Legislation aimed at repealing the HIT has gained bipartisan support in Congress. Representatives Charles Boustany (R-LA) and Dan Boren (D-OK) have introduced legislation that has 226 bipartisan cosponsors. Senators John Barrasso (R-WY), Orrin Hatch (R-UT) and Olympia Snowe (R-ME) have introduced companion legislation, “The Jobs and Premium Protection Act.”
The Stop The HIT Coalition represents the nation’s small business owners, their employees and the self-employed who are actively working to repeal the Health Insurance Tax. Since the Coalition’s formation last May, it has grown to include more than 35 national organizations, representing millions of small business owners across the country. The Coalition’s website enables small business owners and employees to sign a petition and write a letter to their elected official urging them to repeal this tax on its Take Action page.