New Tax Could Boost Small Business Premiums an Extra $1,000 per Family, per Year
ObamaCare imposes a new tax on health insurers of $8.1 billion annually beginning in 2014 and rising to $14.3 billion by 2018. The Congressional Budget Office affirms the general consensus of economists that the new tax “would be largely passed through to consumers in the form of higher premiums for private coverage.” Results from a Ken Kies study suggest that the insurance tax could cost the typical family of four with employment-based coverage as much as $1,000 a year in higher health premiums.
Small businesses and their employees would bear a disproportionate burden. This is because the tax applies only to fully insured health benefits coverage. Self-funded plans, which are the most common type of plan for large employers with 200 or more employees, are exempt from the tax.
What about small business tax credits? The credit is only available for a few years and only to very small firms with relatively low average wages. While the credit could potentially offset some of the ultimate premium burden placed on small businesses, its existence does not alter the economic effects of the insurance tax.
On more example of taxing people the president promised he would never tax.
VAT tax is next.
I agree with Bruce. The VAT is right around the corner.
This is not surprising. Practically the entire health reform bill is paid for by imposing taxes and benefit cuts on middle income people.
They are going to ram the VAT tax down our throats just like they rammed ObamaCare down our throats.
I’m looking at lots of pain. I don’t see any gain.
This is really disgusting. Another hidden tax.
Regulations taking affect this year and extending into 2016 will force families and individuals to buy coverage they may not willingly purchase otherwise. With new mandated benefits tacked, on the cost of coverage can only increase.
[…] Small business: As I blogged earlier, the health control bill will drown businesses in 1099 tax forms. New taxes on insurance premiums will disproportionately affect small businesses. […]
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