GOP hiding true costs of repeal

[Joanne98]

It is ironic that the first order of business planned for the new Republican House is a massive tax increase for America’s small businesses. They may not know it, though.

The percentage of very small businesses offering health insurance to their workers increased in 2010, despite economic hard times. Several reports attribute this increase to the health care tax credit, which covers 35 percent of their costs in providing health insurance to employees.


If the Republican repeal bill passes, small businesses that paid to insure their employees through 2010, counting on this tax credit, will have to pay a substantially larger tax bill in April.

Many large employers, including state and local governments, will also lose the retiree reinsurance coverage they have relied on for the past year to cover 80 percent of expenses of their high-cost retirees. For employers, the loss of this assistance may mean the end of their retiree programs.



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