REHOBOTH, D.E., February 28, 2013 – Small businesses 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 Rehoboth 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 Charles Boustany (R-LA) and Jim Matheson (D-UT) to repeal the HIT, attendees called for Delaware’s representatives to join the fight in eliminating this harmful tax.
“Small companies like mine depend on a committed staff to withstand the cyclical nature of tourism season,” said Bill Klemkowski, owner of Jake’s Seafood. “If this new tax is implemented, my ability to provide the quality health care my employees deserve will be much harder and could seriously threaten my ability to grow my company.”
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 over a decade. The HIT could impact more than 70,000 Delaware small businesses and over 350,000 Delaware 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.
“At a time when small business owners are still recovering from one of the longest recessions of our recent history, adding yet another tax burden will only serve to prolong the economic hardships many small businesses face in Delaware,” said Ellen Valentino, Delaware state director of the National Federation of Independent Business. “It is encouraging to know that Representatives Boustany and Matheson understand this and are fighting to protect America’s small business. We hope Delaware’s leadership in Congress joins in this critical effort.”
Today’s event was hosted by Delaware small businesses owners 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.