Now in its second week, the government shutdown has captured the nation’s attention and for good reason. Thousands of Federal workers have been furloughed, important government agencies have been forced to halt activity and the ripple effects on the economy will only worsen as the days tick by. But while the shutdown takes center stage, it is important to keep in mind the effects of the looming health insurance tax, or HIT.
President Obama recently expressed his concerns about how the shutdown would affect small businesses that were just starting to work their way out of the recession. But while the shutdown will certainly have an impact, a bigger long-term concern is the HIT. Kevin Kuhlman, Manager of Legislative Affairs for National Federation of Independent Business, a leading Stop the HIT Coalition member, made that point in a recent statement released by the Stop the HIT Coalition and reported by Business Journals across the country.
“If President Obama is as concerned about small businesses as he claimed today,” Kevin said, “he should turn his concern into action and provide them relief from the significant burden of the HIT, which will raise taxes and stifle job growth.”
Unlike the shutdown, which will be resolved, once the HIT takes effect Jan. 1, it will not have an end in sight, taking money out of the economy in every community and state in the country year after year. According to a study by the National Federation of Independent Business Research Foundation, the HIT will result in a reduction of private sector employment of as much as 262,000 by 2022. During the same time period, the HIT will reduce U.S. GDP by as much as $35 billion. On an individual basis, the HIT will cost the average family $5,000 over the course of the next 10 years.
These numbers should transcend party politics and spur action to come to a solution to avoid such disastrous results. The ongoing discussions about how to resolve the government shutdown gives President Obama and Congressional leaders an opportunity do just that and provide small businesses and their employees relief from the HIT. Bipartisan support already exists for current legislation to repeal this tax. Taking steps to provide relief for small businesses and their employees would go a long way to demonstrate Congress’ concern for the hardworking men and women who keep the country running.
We need your help in our efforts to repeal the HIT. Contact your member of Congress to share your thoughts, and follow along with our Facebook and Twitter pages as we continue our HIT Countdown.