WASHINGTON, D.C. (May 4, 2015) – Lawmakers, small business owners and experts are speaking out about the burdensome health insurance tax (HIT) and the toll it’s taking on America’s Main Street. A bill to repeal the tax now has widespread bipartisan support in the House of Representatives with more than 220 cosponsors.
The HIT is an often overlooked small business tax in the Patient Protection and Affordable Care Act (PPACA), which will impose $159 billion in new taxes on the small business community, their employees and the self-employed over the next decade. This year alone the tax will collect $11 billion from Main Street.
Stakeholders across the country are coming together in support of repeal of the HIT.
Here is what they are saying:
“Our small businesses, their employees and self-employed Americans are being hit the hardest by this unfair tax. Washington should be focused on helping small businesses grow, not burdening them with more taxes.” – Senator John Barrasso (R-WY) in a statement, January 16, 2015.
“The ill-conceived Health Insurance Tax is driving up premium costs for families by hundreds of dollars while slowing small business job creation and economic growth. This coalition of 218 bipartisan cosponsors is putting pragmatism before partisanship and demonstrating Congress is ready to lead to provide relief to family budgets straining under the weight of this tax.” – Congressman Charles Boustany (R-LA) in a statement, April 22, 2015.
“I hear every day from individuals, families, and businesses in Arizona about the cost of healthcare. This common-sense fix will help lower out-of-pocket costs for hard-working Arizonans. By working together, we can provide relief for individuals, families, and employers while increasing access to quality affordable healthcare.” – Congresswoman Kyrsten Sinema (D-AZ) in a statement, April 22, 2015.
“Small businesses bear the burden of this, direct result of this [health insurance] tax. My bill will help to reduce this burden, provide relief for businesses, families and hard working folks in Arizona. This is really a bipartisan effort, Democrats and Republicans working together to relieve folks of this [HIT] burden.
“When I talk to Arizonans, particularly small business owners about health care, the number one thing they voice concern about is increasing costs, and unfortunately the HIT increases that burden on small businesses. If those costs are passed on to the employees, you’re looking at increasing premiums from $100-$300 for an individual and up to $450 for a family. That’s just not affordable and it’s not good for businesses and families.” – Congresswoman Kyrsten Sinema comments from a health care round table in Phoenix, Ariz., March 13, 2015.
“Businesses have to make decisions, and for every cost that is put upon a business, they have to make a decision about how many employees they keep or how they will change the health insurance that they provide. This is definitely a hit on both business and employees.
“The HIT was called a fee, but that’s not my definition of a fee. With a fee, you get something back—you pay a fee to get into a park, for instance. With this tax, you get nothing back.” – Congressman Diane Black (R-TN) comments from a health care round table in Cookeville, Tenn., April 9, 2015.
“I have been told of the increasing costs on you and other small businesses, and I believe that repealing the HIT will help you. I want to take your issues to the floor of the House.” – Congresswoman Mia Love (R-UT) comments from a health care round table in Salt Lake City, Utah, April 7, 2015.
“I think today’s discussion was great because it really brought to light the burden that these employers feel to take care of their people and what increased costs and increased taxes really mean to them and the decisions they have to make to give healthcare benefits to their employees; or being forced to no longer offer them because of the increasing costs.” – Congresswoman Kristi Noem (R-SD) comments from a health care round table in Sioux Falls, South Dakota, April 6, 2015.
“These taxes have real-world implications on small businesses, on families, on folks’ financial independence. That’s something the administration doesn’t seem to understand.” – Congresswoman Kristi Noem (R-SD) comments from a weekly column, April 10, 2015.
“Largely overshadowed in the national dialogue, it was framed as a tax on insurers, but the truth is, the health insurance tax, or HIT, is increasing premiums for the nearly 90 percent of small businesses that purchase plans in the fully insured marketplace…For the hotel industry – which is largely comprised of small businesses – these costs threaten our ability to continue to grow jobs and provide career opportunities.” – Katherine Lugar, president and CEO of the American Hotel & Lodging Association in Roll Call, May 1, 2015.
“Take the health insurance tax. I understand the need for revenue, but that tax is a disgrace. It makes no sense from a tax policy point-of-view…” – Douglas Holtz-Eakin, president of the American Action forum comments from a Senate Finance Committee hearing, March 19, 2015.
“Adding to the small business burden is a hidden tax that specifically targets plans purchased in the fully insured marketplace, where 88 percent of small business owners purchase their insurance…it will be passed on directly to consumers in the form of higher premiums.” – Dirk Van Dongen, president and CEO of the National Wholesaler-Distributors in The Hill, February 18, 2015.
“This outrageous tax falls directly on the backs of those working to build the infrastructure of our country, from our neighbor’s home renovation to a new city block, growth is being threatened. In fact, the HIT means imminent job loss.” – Michael Bellaman, president and CEO of Associated Builders and Contractors in InsideSources, April 15, 2015.