NFIB Research Foundation: Health Insurance Tax to Cost 152,000 to 286,000 Private-Sector Jobs
Research Foundation: Health Insurance Tax to Cost 152,000 to 286,000 Private-Sector
D.C., May 6, 2014 — The National Federation of Independent Business Research
Foundation today released an updated study showing the
significant number of jobs that will be lost by the Health Insurance Tax (HIT)
as a result of the Patient Protection and Affordable Care Act (PPACA).
Using independent cost estimates,
the Research Foundation’s BSIM (Business Size
Impact Module) predicts the rise in cost
of employer-sponsored insurance stemming from the 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. A similar study released in 2012 predicted a loss of
146,000 to 262,000 jobs and $19 billion to $35 billion in sales by 2022.
“The HIT represents a new tax on small business that raises
insurance costs for an already struggling Main Street and is contrary to the
goals of health care reform,” said NFIB Director of Federal Public Policy
Amanda Austin. “Singling out job creators for tax increases makes no sense for
our economy, is short-sighted and wrong for our nation’s growth. NFIB will
continue to highlight the very real and negative effects the HIT will have on
small businesses and everyday Americans as we work to pass bipartisan
legislation to repeal the HIT.”
The BSIM is a dynamic,
multi-region forecasting model that analyzes the impact of policy “shocks” on
the economy and is unique in ability among models to forecast the economic
impact of such policy on U.S. businesses differentiated by size of the firm.
For this purpose, the BSIM adhered to the Small Business Administration
definition of “small business” as firms with fewer than 500 employees.
The full report is available at: http://www.nfib.com/hitcost.