Letter: Health tax hurts small business

As a small-business owner in Louisiana, I am deeply concerned with the increasing cost of health care. It continues to grow every year and if unchecked, our operations will be in jeopardy. One of the key benefits that I provide for my employees is health insurance. Just over the past few years, my annual premium increases have averaged between 6 percent and 22 percent.

And now, as part of the president’s “Affordable Care Act.”the projected Health Insurance Tax (HIT) scheduled to go into effect in 2014 will add another $500 per employee to those premiums, according to figures from the Congressional Budget Office. Such an increase will probably force me to reduce other benefits for my current employees and will deter me from hiring additional personnel.

With over 1 million Louisiana workers depending on small businesses such as mine for their livelihood, Congress should be finding a way to make it easier to offer health care, not harder. We simply cannot afford this costly new tax.

As chairwoman of the U. S. Senate Committee on Small Business and Entrepreneurship, Sen. Mary Landrieu is in a key leadership position to help us repeal the HIT. Over the years, Sen. Landrieu has been a champion for industries throughout the state from energy to seafood, and has authored many legislative initiatives that benefit small business. But now we face this even-larger challenge that will hurt all small businesses.

I urge Sen. Landrieu to take the lead once again and work to eliminate this harmful tax and thereby protect the small businesses who contribute so much to our state¹s economy.

Mike Mitternight

business owner

Metairie

Comments

1) Comment by ScotB - 17/03/2013

You're asking Mary Landrieu for help with the cost of the health insurance tax? Everyone who has not been in a cave knows she was the deciding vote, having been promised lucrative Medicaid benefits that were not actually provided. What a great deal maker, right?

2) Comment by DMJ - 15/03/2013

If you have less than 50 employees, you don't have to provide health insurance. Don't feel bad about not providing insurance to your employees. That shouldn't be the responsibility of employers, especially those that own a small business. Instead of repealing laws, let's focus together on reducing costs.

3) Comment by tradewinns - 15/03/2013

the people voted obama and his clowns in office, so pay your taxes and shut up. especially those republicans who didn't support romney so they showed their posterias and just didn't vote. their staying home cost romney and the republicans the office of presidency. want to know what idiot put obama in office? look in the mirror.

4) Comment by dday198 - 15/03/2013

does a sales tax increase help small business?

5) Comment by dday198 - 15/03/2013

do you see a problem with the governor raising sales taxes?

6) Comment by chem - 15/03/2013

Bighug is correct. The ridiculous costs for anything at a hospital is what drives the cost of health care. Currently, if one has up to 25 employees with average wages below $50,000, a small business may qualify for a tax credit of up to 35%, to offset the cost of insurance. Of course, small businesses pay more than a large business because of simple volume. In 2014, the tax credit will go to 50%. Also, in 2014, businesses with fewer than 100 employees can shop for insurance in the Health Insurance Marketplace where a small business can get rates similar to large businesses. Employers with fewer than 50 employees are exempt from new employer responsibility policies, so they won't have to pay an assessment if their employees get tax credits through an exchange. Sounds like a good deal to me.

7) Comment by Bighug - 15/03/2013

The biggest problem is the billing for health care. Those $5 aspirins at a hospital, for example. It is a racket that should be stopped. Unfortunately, it won't be as long as a portion of that $5 is making its way into the pockets of politicians.

8) Comment by LJ100 - 14/03/2013

Good effort, but I'm afraid you are wasting your time Mr. Mitternight. The very real problems you point out with Obamacare were foreseen by many people. Unfortunately, more simple minded voters believe you only need pass a law entitled "affordable heathcare" and medical services magically become cheaper. Until a majority of voters become sophisticated enough to see the disastrous secondary and tertiary consequences of mindless government regulation, we are doomed to become Greece.