CORNING, New York – Congressman Tom Reed (R-Corning) joined small business owners today to discuss how the health insurance tax, or HIT, is impacting area businesses and employees. The event was hosted by the Stop the HIT Coalition, a broad based group representing the nation’s small business owners, their employees and the self-employed.
“I’m glad I could be here today to meet with small business owners on this important issue,” Congressman Reed said. “The HIT is a discriminatory tax that will weaken a vital sector of our economy. I’ve been concerned about the financial strain it will impose for some time and it’s time we take action to ensure we aren’t inflicting an additional hurdle on small business owners.”
The HIT is an often-overlooked tax that went into effect this year as part of the Patient Protection and Affordable Care Act. The tax is imposed on what’s known as the “fully insured market,” where 88 percent of small business owners purchase their health coverage. The HIT is projected to raise health insurance costs for millions of small businesses by as much as $5,000 per employee over the next decade.
“There’s a lot of uncertainty surrounding the impact that health regulations and taxes like HIT will have on local businesses and our economy,” said Michael Reese, owner of the Express Employment Professionals office in Corning. “That uncertainty is concerning to the nearly 100 small businesses I work with every day. Ultimately, this burden could force companies to make some really tough decisions related to the number of employees they have on staff.”
New York is home to 2 million small businesses, which employ more than 7 million workers. According to research by the National Federation of Independent Business Research Foundation, the HIT will jeopardize as many as 2,700 jobs in New York by 2023, and reduce the state’s GDP by almost $600 million over the same period.
Congressman Reed is a co-sponsor of the Small Business and Family Relief Act, a bipartisan bill in the U.S. House of Representatives that would delay the HIT for two years and give small business owners time to prepare for this new financial burden. He has also cosponsored the Jobs and Premium Protection Act, which would repeal the HIT and permanently relieve small businesses of this tax.
“At a time when it should be the highest of priorities, we should be doing all we can to make it easier for our businesses to grow and do business,” said Denise Ackley, President of the Corning Chamber of Commerce. “I am grateful to Congressman Reed for today’s special roundtable opportunity with our businesses so they could learn more about the impact of HIT and address their specific business concerns.”
The Corning Area Chamber of Commerce serves more than 300 member businesses, a majority of which are smaller businesses. The organization participated in the discussion as part of their government affairs mission to provide relevant, impacting information so the businesses are better able to be prepared and make decisions affecting their businesses.
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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.