An Employer Mandate That Destroys Jobs and Punishes Employers

090723 at 2:34 pm 4 comments

Summary: America’s Affordable Health Choices Act of 2009” (H.R. 3200)

 

An Employer Mandate That Destroys Jobs and Punishes Employers Already Offering Coverage

The legislation levies a destructive employer mandate combined with a punitive payroll tax of up to an additional 8 percent on any employer with more that $249,999 in payroll. Payroll taxes are an especially onerous tax, because employers pay it whether or not their business is having a profitable year. The proposal in the House bill makes a bad tax even worse. The taxes punish wage and job growth since the tax increases as payroll increases. Simply put, this is a tax on that will destroy jobs and devastate the economy.

 

 

A New Tax on Job Creators (the surtax)

Another new tax on small business is another new burden on small businesses. The surtax imposes an additional tax on some businesses reducing after tax profits at a time when small businesses are struggling to find capital. Because 75 percent of small businesses are structured as pass through entities, they pay their business taxes at the individual level. More than one-third of small businesses who employ 20-250 employees would face the tax. The businesses most likely to face this tax employ 33.5 million American workers, more than one-quarter of the American workforce.

 

 

A “BIG” Price Tag for the Minimum Plan

The chief obstacle for small employers finding affordable health insurance is cost. On average, small employers already pay 18 percent more than big business for the same benefits. The legislation calls for a political board to determine what constitutes “coverage” and the decision of that board will be used to define whether an employer offers an “acceptable” plan. This bill does nothing to ensure that the new plans will be less costly than what small employers are paying today. Congress must focus on creating quality benefit plans that are affordable.

 

 

Exchange That Sets a Floor, Not a Ceiling

Today, among firms with 1-199 workers, 86 percent of those who offer coverage can only offer one plan. Small business desperately needs more choices and a more efficient marketplace to purchase health insurance. The exchange concept might be an appropriate answer to these needs. However, the benefits required to be included in the plans must be a ceiling rather than a floor. Allowing states to add additional requirements, as H.R. 3200 does would be costly and leave small employers vulnerable to the same inefficiencies they suffer from today.

 

 

Insurance Market That Falls Short For the Small Business Marketplace

The legislation limits the exchange to only a few small businesses leaving the overall small group market with fewer, rather than more options to shop for health insurance. The legislation splits employers between non-group (one person), smaller small businesses (2-20 employees), and the remainder of small businesses (21-50 employees, in most cases), which creates smaller pools and greater segmentation. Congress must guarantee date-certain entry into the exchange within 3 years.

 

 

A Politically Powerful Insurance Czar

The Health Choices Commissioner will have unbridled authority to institute rules and regulations that greatly affect small employers, including the ability to define who is and is not a full-time and part-time employee. Thresholds set forth by an unelected commissioner would be subject to continual changes, leaving small business owners in constant fear of ever-changing compliance requirements.

 

 

Government-Run Healthcare Option

We oppose the public plan option. A government-run plan cannot compete fairly with the private market. We believe that with proper reforms, the private market can meet the challenge and be held accountable to provide greater competition and lower-cost solutions for small businesses and their employees.

 

From NFIB the voice of Small Business

I’m a long-time member of NFIB, part of the NFIB Hawaii leadership counsel. Locally and Nationally, NFIB polls its members, and lobbies on behalf of the interests of Small Business. -aloha! Linda

 

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Entry filed under: Legislation. Tags: , , , , , .

Government is the Solution Orson Welles on Battle Hymn of the Republic

4 Comments Add your own

  • 1. Jackie Durkee  |  090724 at 7:32 am

    I’m so glad that you are making people aware of the healthcare bill.
    On my blog, I’m detailing what the House bill (h.r.3200) actually says.
    http://www.FaithfulinPrayer.wordpress.com
    Come Join the Journey!

    Reply
    • 2. hepsy  |  090724 at 6:21 pm

      Mahalo for your comment Jackie.
      The focus of NFIB is small business, so the items here relate to business, not intended to include the entire bill.
      The whole thing is a mess!
      aloha!

      Reply
  • 3. jcscuba  |  090724 at 10:08 am

    This is so typical of the unintended consequences of government action. Now I fear it is the intended consequence of a bunch of Marxist to try and bring our country down. It isn’t happening on my watch. There are 307 million of us and 535 of them, we must fax write Email, Call and remind them who they work for. J.C.

    Reply
    • 4. hepsy  |  090724 at 6:29 pm

      Yes, innundating our Congressmen with faxes, calls, letters and emails may help them learn to read and think.

      I’m concerned about what the Insurance Czar can do.

      Reply

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