Ranking Member Sam Graves: H.R. 3962 Fails Small Businesses

Dear Colleague Letter

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Washington, D.C., Nov 6, 2009 | Angela Landers ((202) 226-1581) | comments

 

Dear Colleague:

Below are some additional important considerations to take into account when deciding your vote for or against the anti-small business provisions contained in H.R. 3962.

5.5 Million Jobs Lost in the Worst Economy in Generations: Not only will H.R. 3962 increase health insurance premiums for small businesses and their workers, but it imposes more than $136 billion in taxes on businesses that can’t afford government approved insurance for their workers.

President Obama’s Chair of the Council of Economic Advisors found this employer mandate will kill more than 5.5 million jobs during a time of growing unemployment. 

A Tax Burden Higher Than Fortune 500 Corporations:   CBO and JTC found that up to 1/3 of the revenues raised by Speaker Pelosi’s surtax will come from business sources, including small businesses.

The surtax proposal in H.R. 3962 would impose a tax rate on small businesses that is 10% higher than the tax imposed on the largest Fortune 500 corporations (45% versus 35%). 

Two New AMTs: The Democrat bill fails to index both the employer mandate and the surtax to inflation. As a result, more and more businesses will be subject to both the “pay-or-play” tax included in H.R. 3962 and the surtax on “high-income” earners. According to the nonpartisan Tax Policy Center, the number of individuals and small businesses subjected to the surtax will double between 2011 and 2019.

Ignores Proven Methods to Lower Health Care Costs and Premiums: Under this bill and its companion in the Senate, health insurance premiums for small businesses and individuals are expected to rise. This is not the health reform promised to the American people.

The Republican Substitute Is the Only Proposal That Would Lower Health Care Costs for Small Businesses: CBO found that under the Republican Substitute, the average premium paid for small business health insurance declines between 7% to 10%. It accomplishes this goal without $1.3 trillion in new spending; without imposing more than $750 billion in new taxes on individuals, small businesses and medical devices; and without raiding our seniors’ Medicare.

Sincerely,

/s

Sam Graves
Ranking Member
House Committee on Small Business

 

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Tags: Health