Latest study further evidence the HIT will crush small business job creation
Washington, D.C. (November 9, 2011) – In a revealing study released this morning by the National Federation of Independent Business Research Foundation, the effects of the Health Insurance Tax (HIT) prove to be devastating to Wisconsin, with at least 1,500 lost jobs and a $1.5 billion reduction in sales in 2021. The research found that 66 percent of lost jobs and 54 percent of lost sales would be borne by small businesses
The study further demonstrates the need to repeal the HIT, before it goes into effect in 2014, in order to help alleviate the crisis of confidence among the nation’s small business community and provide more economic certainty.
The Stop The HIT Coalition issued the following Statement:
“This study is some of the most conclusive evidence, to date, that the HIT will be a crushing blow to small businesses as they try to stay afloat, create jobs and pull this economy out of the doldrums. Small businesses are the job creating engine for our economy, but this impending tax is already stopping them dead in their tracks. Members of Congress must take action and repeal the HIT before any further damage is done.”
The study included key national findings that as a result of the HIT:
• Increased employer costs would reduce private sector employment by between 125,000 and 249,000 jobs in 2021. Roughly 59 percent of these job losses will occur at small businesses.
• The tax would reduce U.S. real output (sales) in 2021 by between $18 billion and $30 billion. Approximately half of these lost sales would have been sales made by small businesses.
The Health Insurance Tax (HIT), part of the Patient Protection and Affordable Care Act (PPACA) signed into law last year and going into effect in 2014, raises a total of $87 billion in the first ten years and $208 billion in the second ten year. The BSIM (Business Size Impact Module) is a dynamic, multi-region forecasting model that analyzes the impact of policy “shocks” on the economy.
Since the formation of the Stop The HIT Coalition, legislation to repeal this costly, unnecessary tax has been introduced in the House, gaining more than 70 bipartisan co-sponsors. The Coalition has grown to more than 35 national organizations, representing millions of employees from across the country. The Coalition has aggressively generated grassroots support for the repeal of the HIT by educating policymakers and activating its members who will be directly impacted by the pending tax.
More information about the Stop The HIT can be found at www.StopTheHIT.com