Repeal the Health Insurance Tax provision in ACA
As a small business owner, I think it’s a shame that yet another tax has gone into effect that will hurt a lot of people in North Dakota and throughout the U.S. Part of the Affordable Care Act, the provision known as the Health Insurance Tax will primarily impact mom-and-pop enterprises that purchase health insurance policies on the fully insured market. The good news is that some legislators in Washington, D.C., had the foresight to introduce the Jobs and Premium Protection Act, a bill designed to repeal this harmful, hidden tax.
The Health Insurance Tax has been applied to health insurers beginning on Jan. 1 and the CBO estimates it will cost small businesses an additional $500 per covered employee annually. Worse yet, the tax has no cap and will likely rise in the next decade. When smaller companies have less money with which to operate, it becomes very difficult for them to maintain a profit or grow. It also becomes harder to contribute to local non-profit organizations and the like. It’s abundantly clear that the Health Insurance Tax will have a negative impact on not only the small business sector, but on our communities as well.
It is essential that our members of Congress throw their full support behind small businesses by voting in favor of the Jobs and Premium Protection Act. If the Health Insurance Tax is allowed to stand, it will only further stifle economic growth when we need the means to recover.