Texas Small Business Leaders urge Congress to immediately delay Health Insurance Tax (HIT)
DALLAS Texas (Texas Insider Report) The Health Insurance Tax is a major burden to farmers and ranchers here in Texas. Most farmers would like to be able to provide health insurance for their employees and their families but with the rising costs of health care due in part to the Health Insurance Tax its a stretch" said the Texas Farm Bureau Laramie Adams after Texas small business leaders met earlier today with Congressional offices to discuss the impact of the 2020 Health Insurance Tax or HIT.
The HIT is a federal sales tax on health insurance plans purchased by small business owners the self-employed and workers who receive their health care coverage through an employer.
Without Congressional action prior to adjournment to delay the tax for 2020 Texas small businesses their employees the self-employed including farmers seniors on Medicare and middle-income families will be burdened with higher health insurance premiums as they renew their coverage next year.
And absent immediate Congressional action delaying the HIT it is estimated 142 million Americans will be disproportionately impacted particularly those earning an income between $10000 and $50000.
As a result Texas small businesses leaders said they are concerned about the pending impacts of the HIT.
Congress should immediately suspend the HIT tax and provide farmers across Texas immediate relief from rising health care costs.
I encourage Congressman Allred to stand up for Texas farmers by co-sponsoring legislation to delay the Health Insurance Tax and work with his colleagues in Congress to pass a suspension of the tax this year" said the Texas Farm Bureaus Adams following a meeting with the Congressmans staff.
Bipartisan legislation known as the Health Insurance Tax Relief Act of 2019" has been introduced in both the U.S. Senate and House to delay implementation of the HIT for 2020 and 2021.
The effort to prevent a tax hike in the form of the HIT has been a top priority for small businesses as well as the employer communities in Texas and around the country from the hospitality industry to the agricultural sector.
As the owner of a small family-owned business that has existed since 1950 I am gravely concerned about the return of the HIT tax and its impact on my companys bottom line" said Andy Ellard (right) owner of Manda Machine Co. Inc. in Dallas.
The cost of operating a small business has steadily increased across the board and we need help from our elected officials in Washington.
There is bipartisan support in Congress to suspend the HIT tax and Congress needs to pass this legislation this year so small business owners are able to invest much needed funds back into their business instead of spending it on yet another tax" Ellard said.
Texas is home to more than 2.4 million small businesses which employ more than 4400000 Texas workers.
A study by Oliver Wyman shows that Texas families in the small employer market could be faced with $501 on average in higher premiums in 2020 as a result of the HIT.