Jefferson, La., February 21, 2013 – Small business owners and advocates met today to discuss efforts to repeal the costly Health Insurance Tax (HIT) that was included in the president’s health care plan, the Patient Protection and Affordable Care Act (PPACA).
During the event, small business owners from the New Orleans metro area discussed how this new tax would only exacerbate the challenges facing small business by further raising the cost of health care for thousands of businesses and their employees in the state. Given the recent introduction of bipartisan legislation by Louisiana’s 3rd Congressional District Representative Charles Boustany (R) and Jim Matheson (D-UT) to repeal the HIT, attendees called for all of Louisiana’s representatives to join the fight in eliminating this harmful tax.
“As a small business owner, one of the key benefits that I provide for my employees, is health insurance,” said Mike Mitternight, Owner/President of Factory Service Agency in Metairie, LA. “My annual premium increases have averaged 6% to 22% over the past few years; and now, the projected Health Insurance tax scheduled to go into effect in 2014 will add another $500 per employee to those premiums. Such an increase will force me to reduce other benefits for my current employees and will deter me from hiring additional personnel. Certainly this is not the way to improve a weak economy.”
The HIT is a discriminatory tax born from the president’s health care plan, which would impose over $100 billion in new taxes on the small business community, their employees and the self-employed. The HIT could impact more than 300,000 Louisiana small businesses and more than 1.6 million workers and families.
Under the law, the tax will be imposed almost entirely on what’s known as the “fully insured market,” where 87 percent of small business owners purchase their insurance. The tax would raise the cost of health insurance premiums for families by approximately $5,000 over the next decade according to an analysis by former CBO Director Douglas Holtz-Eakin.
“Small businesses are the backbone of our communities,” said Renee Amar, Louisiana State Director for the National Federation of Independent Business. “Our elected officials in Washington need to hear directly from the businesses and workers who would be affected by this tax. Representatives Boustany and Matheson have taken a critical first step in introducing a bill to eliminate this harmful tax and it is our hope that our state’s leadership will join in this important fight.”
Today’s event was hosted by the AutoChlor in Jefferson and members of the Stop The HIT Coalition, an organization representing small business owners, their employees and the self-employed who support a repeal of the HIT and seek to educate policymakers about the impact of the pending tax.
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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.