FOR IMMEDIATE RELEASE
Contact:
Erin Dixon; edixon@reservoircg.com
Massachusetts Business Leaders Urge Congress to
Immediately Delay Health Insurance Tax
Springfield, MA (November 27, 2017) – Congressman Richard Neal convened a meeting with local business leaders in Springfield today calling on Congress to delay the Health Insurance Tax (HIT). The discussion included small businesses leaders in Central Massachusetts who expressed concerns about the impact of the HIT on Massachusetts small businesses and the self-employed if the tax is not delayed before 2018.
“We had a great meeting with Congressman Neal and I want to thank him for his leadership and his strong interest in the business community in Western Mass. The Health Insurance Tax would have a negative impact on the small business community and we passed that message on,” said Rick Sullivan, President & CEO of Valley Steel Stamp.
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 to delay the tax, the HIT is expected to increase premiums nationwide by $14.3 billion next year, when the tax goes into effect in January.
“I supported the efforts of the Affordable Care Act and believe people should have health insurance, everyone at my company does. What’s not fair is the Health Insurance Tax is paid on the back of small businesses like mine that are doing the right thing while large self-insured corporations are not. I thank Congressman Neal for his leadership and for meeting with us to discuss this important issue,” said Steve Capshaw, President & CEO of Valley Steel Stamp.
The HIT has also been estimated to impact 156 million Americans, with 50% of those paying the HIT earning an income between $10,000 and $50,000. A recent study by Oliver Wyman shows that families in the small employer market could be faced with $500 on average in higher premiums in 2018 as a result of the HIT.
Massachusetts is home to more than 600,000 small businesses, which employ more than 1,500,000 private sector 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.
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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.