Healthcare Tax Legislation in New York
Issue Overview: Legislation was introduced that would impose a new $8.4 billion tax on business. Specifically, the bill would impose a $3 per hour/per worker health tax on businesses that don't cover the cost of at least 80 percent of an employee's health insurance. The sponsors of the bill are selling this plan as a way to achieve universal health coverage; however, it would disproportionately hit small businesses and employers who are already struggling with the skyrocketing cost of healthcare. Since these taxes would increase with the size of payroll, adding new jobs would trigger higher taxes.
NFIB Position: A tax of this size and magnitude would have a devastating on many of our members, and would punish small businesses from expanding and creating new jobs. We opposed this legislation and aggressively fought to defeat it.
Issue Status: NFIB was succeeded in defeating the so-called fair share health tax during the last legislative session. This bill was the first step towards the ultimate goal of many in government who want to impose higher taxes on business to fund government-run health care. In addition, the per-hour tax would have been indexed with the consumer price index for medical care for urban consumers in the northeast region, creating a tax increase every year. Defeat of this legislation is a victory for small businesses that are unable to provide health-care benefits due to the high cost of premiums, but it's possible that this legislation will rear its ugly head again, and we stand ready to fight it if it does.
