The U.S. Senate is moving forward with repeal of Obamacare, including the nearly 20 new or higher taxes that the law imposed.

These taxes directly hit middle class families and small businesses, raise the cost of healthcare, and reduce access to care. Repealing these taxes is a huge win for taxpayers across the country. 

It is expected that the Senate will phase in the repeal of these taxes over multiple years. Most Obamacare taxes are currently in effect, and relief should be offered as quickly as possible.  

Immediate repeal of the Obamacare health insurance tax is crucial because it is set to go into effect in 2018. Letting this tax go into effect next year and then repealing it at a later date will cause the cost of insurance to climb. Moreover, it will result in unnecessary complexity for middle class families and small businesses.

This tax is levied on insurance premiums, so its costs are inevitably passed to middle class families and small businesses that provide healthcare to their employees. In addition, the tax impacts the care received by seniors through Medicare advantage coverage and low-income Americans who rely on Medicaid managed care.

As a result, allowing the health insurance tax to go into effect will have significant economic consequences. Next year alone, the tax will total $12.3 billion. Over the next decade, the health insurance tax totals $145 billion.

Immediate repeal means strong tax relief for middle and low-income families. According to the American Action Forum, the tax increases premiums by as much as $5,000 over a decade. In total, the tax hits 11 million households that purchase through the individual insurance market, and 23 million households covered through their jobs. Roughly half of the tax is paid by those earning less than $50,000 a year.

In addition, the tax is devastating to small businesses. It is estimated to directly impact as many as 1.7 million small businesses. The National Federation of Independent Business estimates the tax could cost up to 286,000 in new jobs and cost small businesses $33 billion in lost sales by 2023.

Small businesses account for half of all jobs in the US and two-thirds of new jobs in recent decades, so this tax will mean businesses across the country can spend less on investing in new equipment, hiring new workers, or providing higher wages.

American families have already been hit hard by Obamacare’s tax increases. The law imposed multiple taxes that have increased the cost of care for families and reduced choice, including taxes on Health Savings Accounts and Flexible Spending Accounts.

The last thing taxpayers need is for the health insurance tax to go into effect, even for one year. Conversely, permanent and immediate repeal of the health insurance tax is a huge win for Americans and will help decrease the cost of care for millions across the country.