HIT Expected to Return in 2018 with a Larger Price Tag
America’s small businesses took a collective sigh of relief last December when Congress voted to suspend the impact of the Health Insurance Tax (HIT) for one year.
However, as we head into the home stretch of the 114th Congress, small business owners across the country are caught in limbo, unable to plan for the future or make important business decisions as they again worry about paying a tax bill they can’t afford.
The HIT is forcing employers to choose between hiring new employees to grow their businesses or cutting the benefits of their existing employees. Small businesses are the true engines of growth in America, and working families across the nation depend on these employers for their paychecks, insurance and, frankly, peace of mind. To these employers and employees, uncertainty can be devastating.
While the initial relief passed by Congress will be felt over the next calendar year, the painful tax comes roaring back in 2018 – with a larger price tag. Indeed, as the HIT grows year-over-year, so will the tax bills of hardworking Americans.
Members of Congress are set to wrap up their work in the coming days before heading back to their districts to campaign for the November elections. Two things that are sure to be on the minds of small business voters: health care and taxes.
There will no doubt be a number of pressing issues that need Congress’s attention during the Lame Duck session, and HIT relief should be among their top priorities. We ask Congress to again stand on the side of small businesses, giving them and their employees the certainty and security of additional relief from this hard-hitting tax.