Utica, NY – Congressman Anthony Brindisi met with Upstate New York small business leaders today at Zetlin’s Lounge at Utica Auditorium to discuss the impact of the 2020 health insurance tax, or HIT, on small businesses, their employees, farmers, and middle-income families. Small businesses leaders expressed concerns about the impact of the HIT on Upstate New York small businesses, their employees and the self-employed if the tax is not repealed or delayed immediately.
“Whether it is small businesses, working families, or seniors, Upstate New Yorkers agree that we need to work together to bring down health care costs, not raise taxes that will increase premiums. Upstate New Yorkers are already worried about skyrocketing health care costs, and the Health Insurance Tax will only make things worse. It’s time to eliminate this harmful tax once and for all, and my bipartisan legislation will do just that” said Congressman Brindisi.
The HIT is a federal sales tax on health insurance plans purchased by small business owners, the self-employed, and workers who receive their health care coverage through an employer. Without action by Congress immediately to delay or repeal the tax for 2020, Upstate small business owners and seniors on Medicare will be hit with higher health insurance premiums as they renew their coverage next year.
Congressman Brindisi recently introduced the “Jobs and Premium Protection Act,” a bi-partisan bill in the U.S. House that would permanently repeal the HIT tax, protect jobs and prevent an increase in insurance premiums for families and small businesses. The effort to prevent a tax hike in the form of the HIT has been a top priority for small businesses and the employer community, from the hospitality industry to the agricultural sector.
“Uncertainty in any part of our business is a problem for small business owners, because it hampers our ability to grow. Repealing the Health Insurance Tax will provide small businesses with the certainty we need in order to invest in our employees and future growth, rather than facing what amounts to be approximately a $650 penalty on every one of our employees,” said Michael Gigliotti, owner of Allied American Abstract Corporation in Utica. “Getting rid of the HIT tax is one thing Congress can do to help small businesses in New York who are already struggling with higher costs. I’m grateful to Congressman Brindisi who is standing up for small business owners by pushing for full repeal of the HIT tax.”
“The National Federation of Independent Business (NFIB) appreciates Congressman Brindisi’s efforts to provide relief from the HIT, the elimination of which would lower Upstate small business health insurance premiums by up to 3% immediately. Relief from the HIT could provide up to $1,000 in savings for a family of four,” said Greg Biryla, NFIB’s New York State Director.
New York is home to more than 2.1 small businesses, which employ more than 4 million New York workers. A study by Oliver Wyman shows that New York families in the small employer market could be faced with $651 on average in higher premiums in 2020 as a result of the HIT. Absent Congressional action to delay or repeal the HIT, this tax is estimated to disproportionately impact 142 million Americans, particularly those earning an income between $10,000 and $50,000.
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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 in 2011, it has grown to include more than 35 national organizations, representing millions of small business owners across the country. For more information, please visit www.StopTheHIT.com