U.S. Senator Orrin Hatch (R-Utah), Ranking Member of the Senate Finance Committee, and U.S. Rep. Jim Matheson (D-Utah) were joined on Capitol Hill today by U.S. Senator John Barrasso (R-Wyo.) and U.S. Rep. Charles Boustany (R-La.) as well as members of the Stop the HIT coalition to highlight the six-month countdown to repeal the health insurance tax (HIT) included in the President's health law. This Congress, Hatch and Barrasso have introduced legislation (S.603) to repeal the tax on job creators and their employees. Matheson and Boustany have introduced companion legislation (H.R. 763) in the U.S. House of Representatives. According to the Joint Committee on Taxation (JCT), eliminating the HIT would save an average family $350-$400 in 2016, alone.
"The President promised that the health law would lower health care costs and reduce premiums by $2,500," said Hatch. "We told him before the law passed that there was no way he could keep this promise. And, here we are today watching ObamaCare unravel as middle-class families pay the price. We need to end this assault on small businesses and relieve them from this job crushing law by repealing this health insurance tax and ObamaCare in its entirety."
"This $100 billion tax is a real problem for small businesses in Utah and across the country," said Matheson. "The Health Insurance Tax ultimately affects those who pay premiums. In this case, that's small business owners, families, and individuals. This tax does not improve the rising cost of health care or encourage healthier lifestyles for consumers. We know already that health insurance costs are one of the largest expenses for small businesses, and the Health Insurance Tax will only exacerbate the problem."
Starting in 2014, health insurance companies will be hit with a tax based on their net premiums written in the fully-insured market. Eighty-seven percent of small businesses purchase their insurance in this market, as does the self-employed and uninsured. The National Federation of Independent Business (NFIB) predicts this tax could result in 146,000 to 262,000 fewer jobs between now and 2023 - with more than half of those losses falling on the backs of small businesses.