ObamaCare’s Tax on Small Business
The 2010 healthcare law contains a tax on the health insurance policies that most small businesses purchase. Although the tax is formally structured as a fee on health insurers, recent analysis has determined that virtually all of the tax burden will be passed on to the purchasers of insurance: employers and employees. Estimates predict the tax will raise the cost of employer-sponsored insurance by 2% – 3%, imposing a cumulative cost of nearly $5,000 per family by 2020. The NFIB Research Foundation’s BSIM model suggests that such price increases will reduce private sector employment by 125,000 to 249,000 jobs in 2021, with 59 percent of those losses falling on small business.
Full NFIB report on the effects of ObamaCare’s premium tax on small businesses.
Not many people know about this. Of course, the Obama administration never talks about it.
This is a common tactic some states have used in the past to subsidize coverage for other people. It really doesn’t make any sense to tax health coverage and then use the proceeds to subsidize health coverage.
I would imagine that the current crop of presidential candidates would be all over this at some point.
Another incentive to dump employees into the health insurance exchange…