BRUNSWICK – Congressman Jim Renacci joined local small business owners last week in Brunswick to discuss how the health insurance tax, or HIT, is impacting local businesses and employees.
The event, sponsored by the Stop the HIT Coalition, a broad based group representing the nation’s small business owners, their employees and the self-employed, was hosted by Brunswick Power Equipment. In addition to several local business owners, the Sept. 15 event was attended by Brunswick Mayor Ron Falconi, Medina County Commissioner Tim Smith and Brunswick Hills Trustees Michael Esber and John Witthuhn.
“As a CPA in the health care industry, I have co-sponsored H.R. 928 – a bipartisan bill in the U.S. House of Representatives that would repeal the HIT and permanently relieve small businesses of this burdensome tax,” Renacci said.
The HIT is an often-overlooked tax in the Patient Protection and Affordable Care Act that significantly drives up health insurance costs for millions of small businesses. The tax will amount to $159 billion in new costs over the next decade, which will be almost entirely passed on to small businesses and the self-employed who purchase coverage in the fully insured marketplace.
The tax raises the cost of health insurance premiums for families by approximately $500 a year, according to an analysis by former CBO Director Douglas Holtz-Eakin.
“The additional $500 per employee per year cost on our 22-staff company is detrimental to our budget. The additional cost will take away from our ability to hire, give raises or bonuses,” said June Kasidonis, vice president of Brunswick’s Kasidonis Heating and Cooling Inc., who was one of several local business owners in attendance at the roundtable.
According to figures provided by Renacci’s office, Ohio is home to more than 926,000 small businesses, which employ more than 2 million workers. According to research by the National Federation of Independent Business Research Foundation, the HIT will jeopardize between 152,000 to 286,000 private-sector jobs across the U.S. by 2023, and reduce real GDP by as much as $20 billion to $33 billion over the same period.
Renacci is a co-sponsor of H.R. 928, a bipartisan bill in the U.S. House of Representatives that would repeal the HIT and permanently relieve small businesses of the tax.
Throughout the roundtable discussion, Renacci also fielded several questions regarding the Affordable Care Act and corresponding rate increases most small businesses have encountered.
“I can relate,” Renacci said. “I’m also on the Affordable Care Act and I’m paying approximately $1,000 a month for my healthcare which has a $6,000 deductible,” he said. “My costs have gone up tremendously, too, because I never meet the deductible.
Other topics addressed included centered on minimum wage increases, welfare and drug testing its recipients, as well as immigration and border security.