Press Releases

REED SAYS OBAMACARE TAXES ARE HAVING A NEGATIVE IMPACT ON JOB GROWTH; Estimated two million small businesses will bear cost of new taxes beginning in 2014

f t # e
Washington, DC, July 3, 2012 | comments

At a press conference at the Chemung County Chamber of Commerce in Elmira this morning, Congressman Tom Reed discussed the Affordable Care Act’s negative impact on the local economy.  “The taxes and mandates of Obamacare are discouraging job creation,” Reed said. “Full implementation of this law will require one of the largest tax increases on individuals and businesses in history. Small businesses, which create two out of every three new jobs, will be hit particularly hard by the tax increases.”

Reed cited the new Health Insurance Tax (HIT) scheduled to go into effect in 2014 as part of Obamacare as one of most negative aspects of the law.  The new tax is a fee charged to all health insurance companies based on their net premiums written. The HIT will be passed on and raise health care premiums on an estimated two million small businesses and in turn actually raise health insurance costs on tens of millions of employees.   

During the press conference, Reed also referred to a visit he had to Dyco Electronics, a Steuben County business which has just under 50 employees and a need for more. However, they can’t afford the healthcare cost if they have more than 50 employees. “This plan makes it very difficult for small businesses to add full-time jobs,” Dyco President Greg Georgek told Reed during the visit.

Reed was joined at the event by Kevin Keeley, Chemung County Chamber of Commerce President, Katie Clark, owner of Katie’s Café, and Gina Mitchell, president of Office Equipment Source.   Clark and Mitchell also discussed how the health care plan will negatively impact their employees and businesses.

The HIT will cost businesses and employees $8 billion in 2014, increasing to $14.3 billion in 2018. There is neither an expiration nor a growth cap for the Health Insurance Tax.   

“Everyone agrees with reforms such as requiring coverage for pre-existing conditions, allowing children up to age 26 to be carried on a parent’s policy, and covering preventive health care services like mammograms for women,” Reed said. “However, Obamacare must be repealed because it hurts small businesses, deepens our national debt, and does not deal with the root problem, which is the cost of care.”

#####

f t # e