WASHINGTON, March 20 -- The National Federation of Independent Business issued the following news release:
The National Federation of Independent Business Research Foundation today released an updated study (http://www.nfib.com/research-foundation/studies/hit-cost?utm_campaign=HIT&utm_source=Research&utm_medium=Release&utm_content=hitcost) showing the significant number of jobs that will be lost by the Health Insurance Tax (HIT) as a result of the Patient Protection and Affordable Care Act (PPACA).
Using independent cost estimates, the Research Foundation's BSIM (Business Size Impact Module) (http://www.nfib.com/research-foundation/studies/hit-cost?utm_campaign=HIT&utm_source=Research&utm_medium=Release&utm_content=hitcost) predicts the rise in cost of employer-sponsored insurance stemming from the HIT will result in a reduction in private sector employment of 146,000 to 262,000 jobs by 2022, with 59 percent of the job losses coming from small businesses. This will amount to a reduction of U.S. real output (sales) by between $19 billion to $35 billion during the same time frame. A similar study released in 2011 predicted a loss of 125,000 to 249,000 jobs and $18 to $30 billion in sales by 2021.
Bipartisan legislation to repeal the HIT was introduced last month in the House of Representatives by Reps. Charles Boustany (R-La.) and Jim Matheson (D-Utah).
"Singling out job creators for tax increases when unemployment is still a major hurdle for our economy is short-sighted and wrong for our nation's growth. We need to do all that we can to increase jobs, not reduce them," said Susan Eckerly, NFIB Senior Vice President of Federal Public Policy. "The NFIB will continue to highlight the very real and negative effects the HIT will have on small businesses and everyday Americans as we work to pass bipartisan legislation to repeal the HIT."
The BSIM (www.nfib.com/hitcost) is a dynamic, multi-region forecasting model that analyzes the impact of policy "shocks" on the economy and is unique in ability among models to forecast the economic impact of such policy on U.S. businesses differentiated by size of the firm. For this purpose, the BSIM adhered to the Small Business Administration definition of "small business" as firms with fewer than 500 employees.
The full report is available at: http://www.nfib.com/hitcost.
TNS MGD130320-4253658 StaffFurigay