The House Small Business Subcommittee on Health and Technology Chairman Chris Collins (NY-27) led a hearing to examine the economic effects of the upcoming health care law’s insurance tax on small businesses. Beginning in 2014, the health care law imposes a new tax on the health insurance policies that most small businesses purchase. The tax will be $8 billion in 2014, will increase to $14.3 billion in 2018, and increase based on premium trends after that.
Dean Norton, president of New York Farm Bureau in Elba, NY said, “Health insurance costs for small businesses are already rapidly trending higher, increasing 103% since 2000. According to the Joint Committee on Taxation, the health insurance tax will further increase family premiums by $400 or 2.5% in the year 2016, making it even harder for farmers to purchase coverage for themselves, their families and their employees.”
