WASHINGTON, D.C. March 1, 2013 – The Stop the HIT Coalition, a broad-based group representing the nation’s small business owners, their employees and the self-employed, today expressed disappointment in response to the U.S. Department of Health and Human Services’ (HHS) announcement of a proposed rule on the $100 billion Health Insurance Tax (HIT) included in the Patient Protection and Affordable Care Act (PPACA).
“As we work toward ending this long and drawn out recession, America’s small businesses need the freedom to grow their operations and hire new workers,” said Amanda Austin, Director of Federal Public Policy at the National Federation of Independent Business (NFIB), a leading Stop the HIT Coalition Member. “They do not need another tax that will only lengthen the recovery time. The bipartisan legislation HR 763, introduced by Representative Charles Boustany (R-LA) and Jim Matheson (D-UT), offers a common sense solution to eliminating the HIT and protecting the fragile recovery of our economy.”
The HIT is a discriminatory tax born from the President’s health care plan, which will impose $101.7 billion in new taxes on the small business community, their employees and the self-employed. The HIT does not sunset and is expected to cost each family approximately $5,000 in higher premiums over the decade, according to an analysis by former CBO Director Douglas Holtz-Eakin.
The HIT is especially misguided as it is cloaked as a fee, when it is surely a tax placed on insurance providers and will undoubtedly be passed on to small businesses, their employees and the self-employed. The Congressional Budget Office (CBO) confirmed this, stating that the HIT “would be largely passed through to consumers [small and family-owned businesses] in the form of higher premiums for private coverage.” Increasing the cost of health insurance plans for small business owners and the self employed make offering affordable coverage, or any coverage at all, to employees more difficult.
“Many small businesses provide quality health coverage for their staff, but with an increase of $500 a year per employee, many may be forced to cut back hours or implement a hiring freeze to protect their operating budgets,” continued Austin. Now is the time for Congress to focus on growing jobs and reinforcing the strength of U.S. business and the first step is eliminating this harmful 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.