PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Small Business Advocate Kerrigan Hails Repeal of Onerous “HIT” Tax in Year-End Spending Deal

By at 16 December, 2019, 9:58 pm

NEWS

For Immediate Release

Washington, D.C. – The following statement can be attributed to Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan on the announcement that the year-end spending package announced today by Congressional leaders includes relief from the health insurance tax (HIT), a harmful levy that targets the health insurance plans of small businesses and the self-employed:

“Entrepreneurs and small business owners will be very relieved to learn that Congress is listening to them when it comes to unbearable health coverage costs. Relief from the HIT tax is a critical provision within the spending deal announced today, and will save small businesses between $400-$500 per-employee on annual premiums. This unfair tax hits small businesses where it hurts the most, as high health coverage costs squeeze profitability and competitiveness and prevent many from offering health insurance to compete for workers. Relief from the HIT will boost the confidence and bottom lines of small businesses in 2020 and beyond. This is a very big win for entrepreneurs and small businesses and we are pleased members of Congress on both sides of the aisle listened to our members on this critical issue.”

The HIT, included in the Affordable Care Act (ACA), would have added approximately $16 billion to the cost of coverage for individuals, small businesses and Medicare Advantage seniors if allowed to return in 2020 (currently, there is a moratorium on the tax). Half of this insidious tax is paid by individuals and families with incomes between $10,000 and $50,000.  Small businesses are targeted by this tax, as the HIT is levied on the fully-insured market, where 87% of small businesses purchase their health insurance.

SBE Council also joined a coalition of business allies in support repeal of the medical device tax and “Cadillac tax” which was also included in the year-end spending deal.

Related Content:

The Clock is Ticking on 2019: Congress Must Fix the “HIT” to Lower Health Coverage Costs for Small Businesses, Press Release, December 14, 2019.

Taxpayer Groups Join Small Business to Call for a Solution to the Insidious HIT Tax, Media Release, December 5, 2019.

FIX the HIT: Coalition Letter to Senate Majority Leader McConnell and House Minority Leader McCarthy, December 3.

Bipartisan Momentum is Building to Fix the HIT Tax, Small Business Insider blog post, March 2019.

Letter to President Trump: HIT Tax Action Needed Now to Sustain Small Business Optimism and Growth, November 2018.

Health Care Costs #1 Concern of Small Business Owners: HIT Tax Relief an At-Hand Solution, Small Business Insider blog post, November 2018.

 

Contact: 

Karen Kerrigan, SBE Council president & CEO

e-mail: kkerrigan@sbecouncil.org

SBE Council is nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For 25 years, SBE Council has worked on and advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth. Visit www.sbecouncil.org for additional information. Twitter: @SBECouncil

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