CHEYENNE, Wyo., March 19, 2013 – The Stop the HIT Coalition, a broad-based group representing the nation’s small business owners, their employees and the self-employed, today commended Wyoming Senator John Barrasso (R) for his introduction of legislation to repeal the Health Insurance Tax (HIT) included in the Patient Protection and Affordable Care Act (PPACA). Senator Orrin Hatch (R-Utah) is the legislation’s cosponsor.
“Senators Barrasso and Hatch took a critical step today in protecting the financial futures of millions of small businesses and their employees,” said National Federation of Independent Business President and CEO Dan Danner. “By protecting small businesses from yet another burdensome tax, this bill will ensure companies can continue to hire and offer a much-needed boost to their local economies.”
The HIT is an often-overlooked small business tax in the President’s health care law that threatens to raise health insurance premiums for small business owners, their employees and the self-employed beginning in 2014. With more than 60,000 small businesses that employ over 220,000 workers, this tax could serve as a chief obstacle to Wyoming’s economic growth.
According to a study released today by the National Federation of Independent Business Research Foundation, the HIT would reduce private sector employment by between 146,000 and 262,000 in 2022. Roughly 59 percent of these job losses will fall on small businesses. The survey also showed that the added tax would reduce U.S. real output (sales) in 2022 by between $19 billion to $35 billion.
“Given the substantial contribution Wyoming small businesses make to the state’s economy, it is encouraging to see our elected official roll up his sleeves and take action to protect our local companies against an unnecessary financial burden,” said Tony Gagliardi, Wyoming State Director of the National Federation of Independent Business. “I thank Senator Barrasso for introducing a bill to repeal the HIT and help businesses across the state and country continue grow and create jobs.”
Over the course of the next 10 years, the HIT will impose more than $100 billion in new taxes on health care plans in the fully-insured market, where 88 percent of small businesses and the self-employed purchase insurance. According to an analysis by former Congressional Budget Office Director Douglas Holtz-Eakin, every family affected by the HIT can expect to pay approximately $5,000 in higher premiums over the decade.
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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.