Detroit Small Businesses Urge the Repeal of Health Insurance Tax



Published:

DETROIT – Michigan small business owners and advocates gathered for a roundtable event February 28 to discuss the threat and implications of the looming Health Insurance Tax (HIT). The HIT will take effect in 2014 and directly impact each of Michigan’s 820,244 small businesses. Small business owners believe the tax will severely reduce their ability to expand, create new jobs and contribute to the state’s economy.

During the event, small business owners from the Detroit area had the chance to meet with fellow local owners and employees to examine the possible effects the HIT will have on the small business community as well as the significance of repealing the costly tax.

“The city of Detroit and the entire state of Michigan truly emphasize the qualities of hard-work and determination, and our small businesses are no exception. In Michigan, small businesses make up 98.3 percent of the state’s total employers and provide products, services and revenue unparalleled by any other segment. Michigan cannot afford a tax that is so threatening to one of our greatest assets, the HIT must be stopped,” said Tony Stovall, President of the Detroit Black Chamber of Commerce.

The HIT, part of the Patient Protection and Affordable Care Act, was originally intended to target large insurance companies. However, some believe that it will directly fall upon small business owners and their employees and the self-employed, totaling $87 billion within the first ten years, and $208 billion in the next decade.

“Michigan officials must stand up for our small businesses and provide support for their success by repealing this unnecessary HIT that will stifle small business growth and prevent future job creation,” said Damon Tooles, President of Tooles Contracting Group.

The event was hosted by members of the Stop The HIT Coalition, which represents small business owners, their employees and the self-employed who support a repeal of the HIT and seek to educate policymakers about the impact of the pending tax.

According to the National Federation of Independent Business Research Foundation, the HIT will have devastating effects on the nation. It will:

  • Reduce private sector employment nationally by 250,000 jobs by 2021
  • Result in $30 billion in lost sales through 2021, with 59 percent of those losses falling on small business
  • Nationally impact the bottom lines of 2 million small business, 12 million employees and self-employed individuals and 26 million employees who are covered by their employer
  • Reduce the take-home pay by $500 a year or $5,000 in just the first decade for an employee with a family plan

Last May, small business groups from across the country announced the formation of the “Stop The HIT” Coalition.  Since then, legislation to repeal the HIT has been introduced in both the Senate and House. Senators John Barrasso, Orrin Hatch and Olympia Snowe introduced S. 1880, “The Jobs and Premium Protection Act and companion legislation in the House, H.R. 1370 currently has over 100 cosponsors. The Coalition has grown to more than 35 national organizations, representing millions of employees from across the country.  The Stop The HIT Coalition has aggressively generated grassroots support for repeal of the HIT by educating policymakers and activating its members who will be directly impacted by the pending tax.

Edit Module
Edit Module Edit Module
Edit ModuleShow Tags

Related Articles

20th Annual Kidney Walk Planned at Detroit Zoo

For the 20th year, the National Kidney Foundation of Michigan is asking the community to join more than 8,000 walkers and supporters May 15 for the annual Kidney Walk at the Detroit Zoo to fight kidney disease.

Annual Detroit Zoo Fundraiser to Return in June with Penguin Theme

The Detroit Zoological Society’s annual Sunset at the Zoo fundraiser will return in June with a penguin theme to celebrate the Detroit Zoo’s new Polk Penguin Conservation Center.

Dearborn Sausage Co. Adds New Chicken Products

Dearborn Sausage Company has developed five new fully-cooked, low-calorie chicken sausages for grilling outside or preparing inside, or using in other recipes.

Tom Gores, Dan Gilbert Plan to Bring Major League Soccer to Detroit

Detroit Pistons owner Tom Gores and Cleveland Cavaliers owner Dan Gilbert announced today they are partnering to bring a Major League Soccer club to downtown Detroit.

Beaumont Pediatric Rehabilitation Center Opens in Macomb Township

Beaumont Children's, part of the Beaumont Health system, has opened a children’s rehabilitation service center in Macomb Township.
Edit ModuleShow Tags

Most Popular

  1. Link Detroit Completes $21M Project Connecting Walking, Biking Paths
    The partners of Link Detroit have completed a collection of five projects connecting 20 miles of...
  2. Birmingham Nears 100% Occupancy as More Retailers Plan Openings
    Downtown Birmingham — which boasts a 97 percent business occupancy rate — is preparing for...
  3. Consumers Energy Tops Annual Goal Early, Invests $1B with Michigan Companies
    Consumers Energy today announced it has invested more than $1 billion in less than a year with...
  4. Multi-room Escape Game Opens in Westland
    A live-action game in which participants have 45 minutes to escape a series of rooms by solving...
  5. Long-Term Talent Supply May Threaten Demand for Most Jobs in Michigan
    Michigan’s top economic leaders today issued a series of findings that show the state is...
  6. Royal Oak’s Vectorform Provides Virtual Reality Headsets to Train DTE Workers
    Line workers and technicians for Detroit-based DTE Energy will be trained on how to handle...