Employer Coalition Commends Senators Barrasso and Hatch on Introduction of Legislation to Repeal the Health Insurance Tax on Millions of Small Businesses and Self-Employed
ANCHORAGE, Alaska (March 19, 2013) – The Stop the HIT Coalition, a broad-based group representing the nation’s small business owners, their employees and the self-employed, today commended Senators John Barrasso (R-Wyo.) and Orrin Hatch (R-Utah) for introducing legislation to repeal the Health Insurance Tax (HIT) included in the Patient Protection and Affordable Care Act (PPACA).
“Senators Barrasso and Hatch took a critical step today in protecting the financial futures of millions of small businesses and their employees,” said National Federation of Independent Business President and CEO Dan Danner. “By protecting small businesses from yet another burdensome tax, this bill will ensure companies can continue to hire and offer a much-needed boost to their local economies.”
The HIT is an often-overlooked small business tax in the President’s health care law that threatens to raise premiums by an estimated $500 a year for small business owners, their employees and the self-employed. With more than 60,000 small businesses that employ over 280,000 workers, this tax could serve as a chief obstacle to Alaska’s economic growth.
According to a study released today by the National Federation of Independent Business Research Foundation, the HIT would reduce private sector employment by between 146,000 and 262,000 in 2022. Roughly 59 percent of these job losses will fall on small businesses. The survey also showed that the added tax would reduce U.S. real output (sales) in 2022 by between $19 billion to $35 billion.
“Some things just make sense, and repealing the health insurance tax is one of them,” said Stephanie MacSwain, owner of Stephanie MacSwain Communications in Anchorage. “Stacking the deck against small business is no way to help the economy grow and make a positive difference in people’s lives. It is great to see some legislators stepping up to take care of this issue.”
Over the course of the next 10 years, the HIT will impose more than $100 billion in new taxes on health care plans in the fully-insured market, where 88 percent of small businesses and the self-employed purchase insurance. According to an analysis by former Congressional Budget Office Director Douglas Holtz-Eakin, every family affected by the HIT can expect to pay approximately $5,000 in higher premiums over the decade.
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 visitwww.StopTheHIT.com.