I have been reading and listening to public debate about President Obama’s health care law. I thought I had heard and read everything there was to know about this law. However, recently I learned something new and troubling: included in the health care law is a tax that will cost small businesses $500 a year per employee.
This health insurance tax, also referred to as the “HIT” is a significant burden for many small businesses. As owner and operator of the Matthews House in Cary, I employ five people full time and many others on an event-by-event basis. At $500 per employee, that tax will add up quickly. There are many other businesses in Cary that employ more people than I do, and they will have a much higher tax liability.
Cary is fortunate to have a thriving small-business community. Because of this, I helped start The Cary Innovation Center, a small business incubator that helps entrepreneurs get their companies started. These companies typically hire five to 10 people and are reflective of the 800,000 North Carolina small businesses that could be impacted by the HIT. If each of these businesses will be liable for a $500 per employee tax, it will substantially hamper their ability to grow.
Fortunately, there is bipartisan legislation in the U.S. Congress to repeal this tax. North Carolina’s leaders in Washington need to stand up for the small businesses and the people they employ by supporting the bill to stop the HIT.
Ogle is the CEO of The Matthews House.