NFIB Research Foundation: Health Insurance Tax to Cost 152,000 to 286,000 Private-Sector Jobs

NFIB Research Foundation: Health Insurance Tax to Cost 152,000 to 286,000 Private-Sector Jobs

www.NFIB.com
For Immediate Release
Contact:  Eric Reller 202-314-2073 or [email protected]

 

NFIB Research Foundation: Health Insurance Tax to Cost 152,000 to 286,000 Private-Sector Jobs

 

WASHINGTON, 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: https://www.nfib.com/hitcost.

 

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NFIB is the nation’s leading small business advocacy association, with offices in Washington, D.C. and all 50 state capitals. Founded in 1943 to give small-business owners a voice in public policy-making, NFIB’s policy positions are set by its 350,000 business-owner members, who send their views directly to state and federal lawmakers through NFIB’s unique member-only ballot. NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information is available online at www.NFIB.com/news.