Obamacare Taxes Target Small Businesses
In the continued debate over Obamacare, most of the attention is focused on the continued rise in healthcare premiums, the employer and individual mandates, insurance company bailouts, and even the failing Obamacare exchanges. But what most commentaries fail to mention is the amount of new taxes Obamacare imposes on the American people, particularly small businesses and their employees.
Contained deep within Obamacare’s 2,700 pages of legislation is a new sales tax on health insurance, estimated to cost taxpayers over $100 billion by 2022. This roughly 2.5 percent excise tax on health insurance premiums exclusively hurts small business owners and their employees since most large businesses self-insure and don’t pay health insurance premiums. This tax will increase health care costs for small businesses even more and prevent them from hiring additional workers or reinvesting in their company.
In addition to the health insurance tax, Obamacare imposes a new 2.3% tax on medical device manufactures, a “Cadillac tax” on high-cost plans, a .9% increase in the Medicare payroll tax, and a new 3.8% Medicare tax on investment income that will continue to discourage economic growth.
Obamacare has done the opposition of what its proponents said it would do – lower health care costs. This unworkable law should be repealed and replaced with true patient-centered reform that will lower costs for patients and businesses.