Letter: Obamacare tax hurts small businesses

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Obamacare was sold to us as a cheaper way for businesses to provide their employees with health care. Unfortunately, health insurance tax that is a part of Obamacare does just the opposite. It makes insurance more expensive, especially for small businesses, and one of the results of that added expense is fewer Maine jobs. Thankfully, though, Congress has the opportunity to fix some of the broken aspects of the ACA.

Small businesses are the drivers of Maine’s economy. They represent 97 percent of all companies in the state and employ well over half the total Maine workforce. By adding $530 per employee to the average small business’ annual health insurance costs, the tax makes it more difficult for smaller firms to hire and retain workers.

The National Federation of Independent Business estimates the tax could destroy as many as 286,000 U.S. jobs by 2023. Employer-provided health insurance is not available to someone who doesn’t have a job.

Maine workers should not be put on the unemployment line by a government program that is supposed to be helping them become insured. I hope Sens. King and Collins, both champions of small business, take a stand against the tax and work to make sure it is repealed.

Mary Small
Bath 

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  • Vanessa

    This article is spot on and there are a number of things that Congress can do to help small business. Federal actions have really placed small businesses in a tough place, especially when it comes to offering affordable healthcare to their employees – notably their use of Health Reimbursement Arrangements. But Congress can do something about it by passing the Small Business Healthcare Relief act. Small businesses would be able to offer health benefits by reimbursing their employees for premiums and out of pocket expenses. This is relief very much needed and I encourage any small business and their employees to learn more and support this bill: http://zane.tips/1haqgnO.