Small Business Reacts to Healthcare Ruling

The U.S. Supreme Court recently ruled in favor of President Obama’s Affordable Care Act, deciding specifically that the federal government may subsidize health insurance for the poor and middle class.

In response, the Stop The HIT (Health Insurance Tax) Coalition released this statement from Kevin Kuhlman, Director of Legislative Affairs at the National Federation of Independent Businesses:

“While the Supreme Court today ruled in favor of the premium subsidies that make health care more affordable for many Americans, the fact still remains that small businesses are suffering under the financial strain of the HIT. This tax directly correlates to increased health care costs, and more specifically higher premiums, for small business owners, their employees and their families. Congress must take this first step to repeal the HIT before unaffordable coverage becomes the status quo for Main Street.”

Stop The HIT represents the nation’s small business owners; the Farm Equipment Manufacturers Association is among several participating trade associations.

The Coalition said the health insurance tax will impose $159 billion in new taxes on the small business community over the next decade and will collect $11 billion this year alone.

It does not sunset and is expected to cost families about $5,000 each in higher premiums over the next 10 years, according to an analysis by former Congressional Budget Office Director Douglas Holtz-Eakin.

The tax is also projected to reduce private sector employment by between 152,000 and 286,000 by 2023, according to a study by the NFIB Research Foundation, with the majority of job losses falling on small businesses.

The Coalition reported that legislation to relieve Main Street of the tax is on the table and has widespread support in both the House and Senate.

The Jobs and Premium Protection Act of 2015, a bill to repeal the tax, was introduced by Senators John Barrasso (R-Wyo.) and Orrin Hatch (R-Utah), who are joined by 34 of their colleagues.

Companion legislation was introduced in the House of Representatives by Charles Boustany (R-La.) and Kyrsten Sinema (D-Ariz.), and it is co-sponsored by a bipartisan group of 229. S