PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Advocacy Group for Entrepreneurs and Small Business Praises Bipartisan Senate Bill on Two-Year Delay of HIT Tax

By at 18 January, 2019, 10:00 am

U.S. Senate Bill S. 172 Addresses High Health Coverage Costs, A Top Concern for Small Biz in 2019

NEWS

FOR IMMEDIATE RELEASE

Washington, D.C. – A bipartisan bill was introduced in the U.S. Senate on January 17, 2019 that would help resolve a key pain point for small businesses and the self-employed. This important piece of legislation (S. 172) addresses the looming potential for increases in health coverage costs and would bring certainty for entrepreneurs and small businesses, according to Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan. A group of six U.S. Senators is being praised by Kerrigan for introducing and co-sponsoring this needed bipartisan effort that will help ease this top concern of small business owners.

“Entrepreneurs and small business owners are grateful for the leadership of Senator Gardner for introducing S. 172, and for Senators Barrasso, Jones, Scott, Shaheen and Sinema in joining him as co-sponsors of this bill to extend the current moratorium on the health insurance tax for two additional years. Extending this relief through 2020 and 2021 means small businesses will be saved from big increases in the cost of coverage that will harm their competitiveness and ability to provide coverage for existing and new employees. In this tight labor market, providing this benefit is essential to recruiting and maintaining the workers small firms need to effectively operate and grow. S. 172 will reinforce small business efforts to compete for workers, and support the growth of the economy in general,” said Kerrigan.

The legislation, introduced by Senator Cory Gardner (R-CO), and co-sponsored by Senators John Barrasso (R-WY), Doug Jones (D-GA), Tim Scott (R-SC), Jeanne Shaheen (D-NH) and Krysten Sinema (D-AZ), extends the 2019 moratorium on the health insurance tax (HIT) for two additional years.  The HIT directly strikes the self-employed, small businesses and their employees. Congress passed a one-year moratorium on the HIT tax for 2019.  But this relief will be short-lived with the return of the HIT in 2020. Small businesses will begin to see their premium costs next year beginning in mid-2019, which will directly impact their plans for hiring, recruiting and expansion, according to Kerrigan.

“Extending relief from this unfair tax will create some stability for small businesses and the economy. The cost relief will help small firms better compete, provide insurance to more employees, or even for the first time, which is an important benefit for attracting and retaining employees in this very tight labor market,” said Kerrigan.

As noted by Kerrigan, the results of a post-election survey conducted by members of the Small Business Roundtable (SBR), of which SBE Council is a member and Kerrigan chairs, found that health care ranks #1 when it comes the chief concerns of small business owners. In a question posed by the SBR survey: “If you could have Congress and the Administration deal with just one issue next year, what would it be?”… small business owners overwhelmingly selected “health care.”

“The small business community is thankful that Senators Gardner, Barrasso, Jones, Scott, Shaheen and Sinema are listening to entrepreneurs and have quickly responded to their needs.  Every Senator needs to sign onto this important bipartisan legislation, which is a common-sense strategy to relieve small businesses of pending price hikes on health coverage,” added Kerrigan.

Related Content:

Small Business Insider: Health Costs #1 Concern of Small Business Owners – HIT Tax Relief an at Hand Practical Solution  

CONTACT: Karen Kerrigan, KKerrigan@sbecouncil.org

SBE Council is a nonprofit, non-partisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For 25 years, SBE Council has worked on a wide range of policy and private sector initiatives to strengthen the ecosystem for startup activity and small business growth. Visit www.sbecouncil.org or @SBECouncil.

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