Americans for Tax Reform sent today the following letter to Senators John Barrasso (R-Wyoming) and Orrin Hatch (R-Utah):
On behalf of Americans for Tax Reform, I am pleased to support S. 1880, a bill that would end the health insurance tax (HIT) included in the Affordable Healthcare Act.
Having passed ObamaCare and seen what was in it, it is clear that the Act is neither affordable nor an improvement in our healthcare. To make matters worse, ObamaCare has significantly contributed to the stagnation of our economy. Among the many reasons for the Affordable Care Act’s job-killing effect is the HIT, which raises healthcare expenses for small businesses thereby forcing them to cut jobs.
By eliminating the health insurance tax, S. 1880 will free up capital for small businesses to hire more employees. This HIT is a levy on insurers that provide full insurance packages based upon the amount of their “net premiums”. Insurance companies have already vowed to pass this tax, valued at $8 billion in 2014 alone, onto their customers in this market, 87% of which are small businesses. For this reason, small businesses will bear the brunt of the HIT.
We cannot both take money away from small businesses, the backbone of the economy, and expect the economy to grow at the same time. In fact, the National Federation of Independent Businesses estimates that this tax will cost the U.S. economy nearly 250,000 jobs and $30 billion in lost sales over the next decade. With the unemployment rate over 9%, we cannot afford to incur these losses. To protect our small businesses and grow our economy, we must end the health insurance tax.
I urge all senators to co-sponsor S. 1880.