Washington, D.C. (September 18, 2014) – With Members of Congress focused on increasing and maintaining American jobs this week, the Stop the Hit Coalition, a broad-based group representing the nation’s small business owners, their employees and the self-employed, encouraged Members of Congress to also address the considerable impact the health insurance tax (HIT) will have on American jobs.
“As midterm elections near, small business owners and employees are closely watching to see how their state leaders are working to preserve businesses and grow American jobs. Today’s House vote on the jobs package illustrates a positive step in that direction, but more must be done to address rising costs to businesses as a result of the Patient Protection and Affordable Care Act,” said Amanda Austin, Vice President of Public Policy at the National Federation of Independent Business (NFIB), a leading Stop the HIT Coalition Member.
“In the days and weeks ahead, Congress would be wise to consider how the health insurance tax is hindering job growth as the tax is predicted to reduce private-sector jobs by as many as 286,000 over the next decade. By delaying this harmful tax, Members of Congress have the opportunity to offer small business owners the crucial time they need to prepare for the many health care changes they are facing and prove they are truly committed to the success of American businesses,” Austin continued.
The HIT is an often-overlooked aspect of the Patient Protection and Affordable Care Act (PPACA) that taxes health insurance policies purchased on the fully-insured market – the marketplace where 88 percent of small businesses and individuals buy insurance. Legislation to repeal the tax has been introduced in both houses of Congress. S. 603 and H.R. 763 combined have more than 255 bipartisan cosponsors, and legislation to provide relief from the HIT for two years (H.R. 3367) has 94 bipartisan sponsors.