Free Markets, Free People

Health Insurance Tax – another governmental attack on small business

So a day or so ago, I talk about how regulation and government intrusion is helping to kill entrepreneurship and, as a result, small businesses. The same problem, as we all know, is also exacerbating the unemployment picture.  A prime example?  That odious law known as ObamaCare.

The US Chamber of Commerce blog has this chart for us to peruse. It is all about the recently implemented “Health Insurance Tax”, aka “HIT”: As this awful law continues to be implemented when it is politically convenient for the Democrats, we see even more disaster lurking for those who are employed and actually “like their insurance and like their doctor”.  But HIT is already taking a toll.

The National Federation of Independent Business’ Research Foundation estimates that the Health Insurance Tax (HIT) will result in a reduction in private sector employment of 152,000 to 286,000 jobs by 2023, with 57 percent of the job losses coming from small businesses. This will amount to a reduction of U.S. real output (sales) by between $20 billion to $33 billion during the same time frame.

Just what we need – another “hit” to employment and a “hit” to GDP. But it is clear the Democrats don’t really care about that.  As one of our low information commenters is want to say “a few eggs must be broken” to make an omelet … or something. Any inanity will do when it is clear that a law is a bust and a failure. As the Chamber of Commerce blog notes:

The HIT, which went into effect on January 1, 2014, levies a tax on health plans sold on the fully-insured market. Eighty-eight percent of it is made up of small businesses. Revenue from the tax will rise by 41% in 2015 and reach $14.3 billion in 2018.

“Small businesses are crucial to rebuilding an economy that allows all Americans to prosper,” Katie Mahoney, Executive Director of Health Policy at the U.S. Chamber said. “We need to work to find ways to ensure small businesses and their employees have the tools to build on their current success, not hinder future growth.”

You’d think what she says would be fairly common knowledge, but apparently the deluded administration that runs this country thinks we’re coming out of the economic malaise it has worked so hard to keep in place, and thus its time for another little shot to the head of small business.

With the HIT – mission accomplished.

~McQ

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9 Responses to Health Insurance Tax – another governmental attack on small business

  • Three thoughts…
     
    1.  This goes to the “mysterious” cause of the effect that Brookings noted respecting business/jobs creation.  Since it was passed, ObamaDoggle has been a job killing MACHINE.  It is now.  I will be tomorrow and every day thereafter.
     
    2.  Pres. ScamWOW PROMISED (yes, he did!) “not one dime” in increased taxes bearing on the middle-class.  ObamaDoggle is chock-a-block with new taxes, and many of them bear HARD on the middle-class.
     
    3.  No popularly supported civil disobedience campaign has ever failed, and for several immutable reasons.  Do not comply.
     

  • The chart makes me chuckle. With an exception or two, the right people are suffering

  • As predicted by me then:
     
    About SCOTUS decision on Obamacare: 5/28/12  to be revisited on latter part of 2014:
    And thus what we pay for health insurance will surely increase because we are the end consumers.
    And also Obamacare will become a big bureaucratic mess because of the matter of interpreting those 2,000+ pages which will become a factor in increasing our payment.
    You could even inscribe that is stone because that will come to pass..
     
    And thus has come to pass…

  • I’m no fan of Obamacare but “152,000 to 286,000 jobs by 2023″ falls into the category of statistical noise.

    • Given the economy and actual unemployment – do you really need that particular additional ‘noise’ as part of the 6th movement of Obama’s Disaster Symphony in G?
       
      No, not considering that if it had been left the flock alone it would be one less thing to worry about, rather than one less thing to observe is kinda like statistical noise.

      • I’ll agree that it is bad for the people that get hit by it but over the 9 year period it is going to be tough to point to one specific cause for job losses on such a small scale.  These numbers are in the range for total (not just private) job creation/loss for a single month yet the outlook is for 108 months.  That comes to .9%.  Just last month some 228,000 jobs were created while a whopping 806,000 people left the workforce.  Now compare that to the high end of 286,000 jobs lost over nine years.

        • “but over the 9 year period it is going to be tough to point to one specific cause for job losses on such a small scale.”
          Yeah I agree.   Sadly we’re into the Joseph Stalin math now where 1 man’s whatever is a tragedy and 200,000 is a statistic.
           
          But really, the Administration will tell you that 806,000 is a pile of the baby boomers retiring to their luxury retirement homes where they’ll have fun in the sun, golf twice a day and have lobster and Chateau Lafite Rothschild every night for dinner.

          • …compassionately freed from “job-lock”.  Thank you, Nanny Pelosi.

  • If the measure of success of the Abominable Careless Atrocity (ACA) was that it helps more people than it harms, than the ACA is failing by all honest measures.
    Therefore Benghazi is not a diversion, but yet another bundle of straw on the camels back. It is only by the lies and propaganda of the LSM that the camel keeps standing