09/15/2008
Health insurance
NFIB submitted testimony at two recent administrative hearings concerning proposed regulations that will potentially increase state fees and insurance premiums for small business owners. The subject of the first hearing before the Division of Health Care Finance and Policy would alter the test for business owners to avoid the "fair share" fee. If adopted, the regulation would require businesses with 11 or more full-time employees or full-time equivalents to pay at least 33 percent of the cost of the premium AND have 25 percent of the employees accept the offer of insurance to avoid the fee. This change is likely to result in the first-time assessment of fees on many seasonal and part-time employers and other small businesses.
The second hearing before the Commonwealth Health Insurance Connector Authority related to regulations that would expand the minimum creditable coverage required to satisfy the individual mandate. The proposed regulations could result in an increase in the cost of health insurance for basic coverage as health insurance mandates that were defeated in the legislature are added to core coverage by regulation. The proposed regulations on high-deductible plans may eliminate the tax benefits of health savings plans and other innovative plans that are becoming increasingly popular as an affordable alternative insurance program for small businesses.
The fact that amended regulations are under consideration before the original regulations have taken effect and before cost-saving sections of the original law are implemented has united and incensed the business community in opposition, including even warnings of legal challenges to the Massachusetts health insurance law. Thank you to all NFIB members who contacted the administration about these regulatory changes and the impact that additional health costs will have on your business.
Fishing industry
The governor has requested federal disaster assistance to reimburse commercial fisherman for losses during this year's red tide outbreak, which shut down 600,000 acres of shellfish areas in the state, while sparing some productive areas on Cape Cod. Commercial fishermen recently split $1.9 million in federal aid as a result of the much more widespread 2005 red tide.
In addition, 500 ground fishermen will receive $12.7 million in federal aid, including money for crews and health insurance as a result of economic damage caused by federal restrictions on harvesting cod, haddock, and other ground fish.
Minimum wage
The Employment Policies Institute has released a study showing that 238,000 teen jobs have disappeared since the 2007 federal wage increase. High summer unemployment levels have spurned calls from politicians for businesses to step up to help teens gain important skills that summer employment can develop and for additional government funded job training programs, but the study shows that public policies have actually created much of the problem. Similarly, teen and other entry-level workers are facing increased barriers to entering the full-time workforce because of minimum wage increases. The minimum wage in Massachusetts is higher than the federal minimum by statute.
IRS
I have received notice of two new IRS products that are designed to make it easier for small businesses and the self-employed to locate information they need on the IRS' Web site. A laminated book mark provides key search words to locate tax information and a new page on the Web site serves as a one-stop starting point for small businesses and self-employed persons who file Schedule C with their Form 1040.
Massachusetts economy
With the August unemployment rate numbers due later this week, the state released information claiming creation of 18,000 new jobs, concentrated in the education and health care industries. August tax revenues remained fairly strong -- up 4 percent over August 2007. Income tax withholdings supported lagging sales tax (declining auto sales) and sharply dropping business tax revenues. For the first two months of the fiscal year, state revenue is up 5.3 percent and slightly above projections, although a one-time corporate tax settlement of $80 million is responsible for the excess.
Greenhouse gas emissions policy
The redevelopment of the Bayside Exposition Center into a mixed use retail-residential-commercial center may be the first major development subject to the state's new greenhouse gas emissions policy. The environmental impact statement must quantify the emissions from increased vehicle trips and include mitigation measures.
And in D.C.
Since the off shore drilling ban expires at the end of September, Congress is expected to have several votes on the energy issue during the next few weeks. NFIB will follow the votes of your Congressional representatives and lobby for legislation, amendments, and policies that will most efficiently provide affordable energy to small business owners.
NFIB sent a letter to Congress last week strongly supporting an increase in offshore oil and gas exploration to alleviate the strong concerns small business owners express regarding the high price of fuel and its impact on their businesses and the economy. NFIB announced support for a comprehensive energy plan earlier this year.
