Small business to take the HIT from Obamacare

posted at 1:01 pm on May 10, 2014 by Jazz Shaw

ObamaCare is settled law, you see. It’s the law of the land and you all need to learn to simply move on with your lives. At this point, for better or worse, we surely must know everything there is to be known about the Affordable Care Act. (After all, we had to pass the law to know what’s in the law and we passed it, right?) As it turns out, there may still be some bits and pieces to come which, while not entirely unknown, have not received the same level of scrutiny as the mandates and cancellation of plans and such. One of them is known as the Health Insurance Tax, or HIT. Dan Danner, in a piece for Fox, explains the rather insidious nature of this wrinkle.

To add insult to injury, a hidden tax within the law is coming to light that threatens the very livelihood of thousands of U.S. businesses and millions of American workers. Known as the health insurance tax or HIT, this is a new discriminatory tax on small businesses and their employees that will raise the premiums by as much as $500 per policy per year.

Main Street enterprises are now being faced with the choice of eating the costs, passing it on to their employees, ending coverage altogether or other unexpected decisions impacting their operations and workers.

Adding to the confusion is the fact that the cost of the tax is only going to grow over time – collecting an estimated $145 billion from small businesses in the first ten years alone and making it that much harder for business owners to prepare for the future.

Ironically, during one of the ACA’s many back door deals, large corporations and unions received a carve-out from the HIT, leaving the full burden of the tax to fall on the fully-insured marketplace, where nearly 90 percent of small businesses, their employees and the self-employed purchase their insurance.

Read that last paragraph again. The idea that there are more hidden taxes coming which will negatively impact small business and job growth shouldn’t come as a shock to anyone who has been paying a modicum of attention to this debate for the past few years. But the way that the unions and major manufacturing interests were able to grab themselves an emergency parachute while small businesses were left holding the tax bill is instructive. The construction of this bill largely took place behind closed doors with crowds of well funded special interests in on the decision making process. If you lacked a seat at that table, the results are now becoming obvious.

There’s already a Stop The Hit website where people can find out more and take action – assuming there is time left for any viable action to be taken. But win or lose, there is an important object lesson here with a wider reach than simply the healthcare debate. When you hear a politician talking about “Comprehensive (Fill in the policy) Reform” and pushing some bill the size of the Greater New York City phone book which they’ve suddenly summoned into existence the night before, run – do not walk – in the opposite direction. If you weren’t in the back room with your own special forces team of lawyers helping to write it, you’re probably in line for the shaft.


Related Posts:

Breaking on Hot Air

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

When premiums decline y’all are going to be pissed!

libfreeordie on May 7, 2014 at 10:18 AM

Schadenfreude on May 10, 2014 at 1:03 PM

But these Obamacare posts are about whistling past the graveyard, by next Novemeber Democrats will be openly running on the ACA. Mark my words.

libfreeordie on December 20, 2013 at 10:14 AM

Schadenfreude on May 10, 2014 at 1:04 PM

small businesses generally don’t vote for Dems, so they don’t care.

8 weight on May 10, 2014 at 1:05 PM

OT – leftist racist in full sunshine

Schadenfreude on May 10, 2014 at 1:11 PM

Detroit spreads.

ElectricPhase on May 10, 2014 at 1:12 PM

The construction of this bill largely took place behind closed doors with crowds of well funded special interests in on the decision making process. If you lacked a seat at that table, the results are now becoming obvious.

Gasp! That can’t be! The Obamassiah said that everything would be broadcast on CSPAN and negotiations would be transparent!

GarandFan on May 10, 2014 at 1:14 PM

Between this and the other thread about internet taxes…

Stuff like this is pretty much how you kill that goose that lays golden eggs.

trigon on May 10, 2014 at 1:15 PM

OT – leftist racist in full sunshine

Schadenfreude on May 10, 2014 at 1:11 PM

I dunno. That didn’t seem all that OT to me.

Harbingeing on May 10, 2014 at 1:21 PM

Bigger government and bigger spending automatically mean more lobbyists trying to channel all of that money. That then leads to cronyism. That happens in ALL big-government societies. It’s human nature. That is why the Dems are the real party of corporate cronyism, with the RINOs close behind. The conservatives are the only ones looking out for the small business, middle-class people, like the Constitution was originally intended to do.

mydh12 on May 10, 2014 at 1:27 PM

Designed to fail, and working as designed …

ShainS on May 10, 2014 at 1:33 PM

When premiums decline y’all are going to be pissed!

libfreeordie on May 7, 2014 at 10:18 AM

Schadenfreude on May 10, 2014 at 1:03 PM

LMAO.

Definite nomination for HIT (HotGas Idiocy Touchstone) post of the decade …

ShainS on May 10, 2014 at 1:38 PM

I’m trying to figure out if the HIT acronym is a mistake by the dems a LA Winning The Future or a purposeful dig at small businesses.

hopeful on May 10, 2014 at 1:48 PM

a la ” Winning The Future”

hopeful on May 10, 2014 at 1:49 PM

A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly.

But the traitor moves amongst those within the gate freely, his sly whispers rustling through all the alleys, heard in the very halls of government itself. For the traitor appears not a traitor; he speaks in accents familiar to his victims, and he wears their face and their arguments, he appeals to the baseness that lies deep in the hearts of all men.

He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist.

A murderer is less to fear. The traitor is the plague. –Cicero

opunmind on May 10, 2014 at 1:51 PM

When premiums decline y’all are going to be pissed!

libfreeordie on May 7, 2014 at 10:18 AM

Schadenfreude on May 10, 2014 at 1:03 PM

The real joke is that the joke is on us.

KMC1 on May 10, 2014 at 1:51 PM

Phase 5: Destroy small business

All is proceeding according to plan.

clippermiami on May 10, 2014 at 1:52 PM

And the HITS just keep coming from Obamacare …

Mark Boabaca on May 10, 2014 at 2:10 PM

opunmind on May 10, 2014 at 1:51 PM

What has been will be again,
what has been done will be done again;
there is nothing new under the sun. – Ecclesiastes 1:9

ncinca on May 10, 2014 at 2:27 PM

His Imperial god-king Majesty, Barack HUSSEIN (The Unready) has deemed small business to be ENEMIES OF THE STATE, and they must be shut down.

ConstantineXI on May 10, 2014 at 2:43 PM

Phase 5: Destroy small business

All is proceeding according to plan.

clippermiami on May 10, 2014 at 1:52 PM

The only chance of imposing totalitarian rule on the United States is to eliminate all individual independence, and that means crushing the middle class and small business and push us into a three-class system, Ruling Elites/Rich Cronies, Imperial Bureaucracy (government workers, the new middle class), and Peasants (all dependents on government).

What each class has in common is that they are ALL dependent on government largesse, or owe their status to it. The Ruling/Crony class will be the smallest (and hence, easy to control), the Bureaucracy quite larger, but the vast majority will be the Welfare Dependent Masses, who will exist on subsistence and thus lack the resources for Rebellion.

That is the “Fundamental Transformation” George Soros (Obama is nothing but a puppet) has in mind for us.

ConstantineXI on May 10, 2014 at 2:56 PM

Long Klieg’s and concertina.

Murphy9 on May 10, 2014 at 2:58 PM

Looks like millions more people freed from job-lock. Heck, freed from job period.

If I still owned my business (whew sold out in 06) I would relieve the Obama-democrat voters from their jobs first.

jukin3 on May 10, 2014 at 3:02 PM

If I still owned my business (whew sold out in 06) I would relieve the Obama-democrat voters from their jobs first.

jukin3 on May 10, 2014 at 3:02 PM

It shouldn’t be hard to spot the liberals on your workforce. They are going to be the laziest and least productive anyway.

ConstantineXI on May 10, 2014 at 3:09 PM

small businesses generally don’t vote for Dems, so they don’t care.

8 weight on May 10, 2014 at 1:05 PM

…plus they create most of the jobs in America…it was a design (“to fundamentally change America”)…not a flaw…in the law!

KOOLAID2 on May 10, 2014 at 3:18 PM

coolrepublica?

rogerb on May 10, 2014 at 3:18 PM

…plus they create most of the jobs in America…it was a design (“to fundamentally change America”)…not a flaw…in the law!

KOOLAID2 on May 10, 2014 at 3:18 PM

“You didn’t build that”…

People who come from Obama’s foreign islamo-marxist background believe that ALL BUSINESS comes from stealing from other people, so it’s not like he puts any value in them.

No, he wants everything to flow from government, which actually DOESN’T build anything and gets EVERYTHING from stealing from other people!

ConstantineXI on May 10, 2014 at 3:22 PM

Naturally the Chamber of Commerce will be all over this. Soon as they’ve buried the last tea partier.

de rigueur on May 10, 2014 at 3:26 PM

Anyone else notice the totally evil expression on Obama’s face? Creepy….

chai on May 10, 2014 at 3:31 PM

Anyone else notice the totally evil expression on Obama’s face? Creepy….

chai on May 10, 2014 at 3:31 PM

We have a Pope preaching involuntary wealth redistribution by government. We have a President of the United States who is an evil, petty, little man who is consistently weakening the American Republic and it’s institutions and emboldening our enemies.

The two happening at the same time cannot be coincidence.

These are the end times… (gulp).

ConstantineXI on May 10, 2014 at 3:38 PM

I’m thinking one of Obama’s goals is to drive the middle class back to unions.

All the job growth is in part time service industry crap, and there’s the unrelenting assault on small businesses. Soon the only choices to maintain a middle class lifestyle will be either get a union job, or work 3-4 part time jobs.

Of course there’s always option C. Settle for being dependent class.

Oxymoron on May 10, 2014 at 3:42 PM

’m thinking one of Obama’s goals is to drive the middle class back to unions.

Oxymoron on May 10, 2014 at 3:42 PM

Union employment was never the majority in the United States, though it used to be FAR higher than it is now. It peaked during the peak of American Industry during and in the first decades after World War II.

The main driver of the death of union employment, ironically was the EPA. Nixon created the EPA in 1970 at the worst possible time for American Industry, which had reached a point where it NEEDED to modernize facilities, most of which were pre-World War II, to compete with postwar European and Japanese industry.

American Industry lacked the capital to modernize, deal with the EPA, AND the unions, and thus largely collapsed in that decade.

Democrats and unions have long given up on growing industry to expand membership again, and instead grow GOVERNMENT to expand membership…

ConstantineXI on May 10, 2014 at 4:02 PM

I would love to see the press corps (I know this isn’t going to happen) ask all the Democrats who voted for this thing, what is really going to happen when all the events Obama postponed become implemented. Of course you’d have to have a press corps that understands the bill and might have even read parts of it, to ask those questions. There is no one in our illustrious free press, that really cares about the ACA, they just want the Democrats to stay in charge in the Senate so Republicans can’t legislate.

bflat879 on May 10, 2014 at 4:20 PM

It’s only Supreme nonsense that sees O-Care as a general tax. As implemented, it’s a selective tax against Main Street small businesses and workers.

Big Business, private and public unions, burrOcrats, and pOlticians get a free pass from O-Care while the unaffordability of O-Care crushes the prosperity and profitability of small business operations thru out the nation.

drfredc on May 10, 2014 at 4:32 PM

The good news is that our economy is creating more small businesses than it’s losing….oh wait.

Doughboy on May 10, 2014 at 5:03 PM

Will Obamacare be repealed or won’t it? Will Congress fund it or won’t it? Will the web site be fixed or not? Blah, blah, blah. We the people just need to do what we need to do and Democrats be damned. Resist. Refuse. Revolt. EXEMPT OURSELVES! We did not comply with Prohibition and we simply should not comply with Obamacare. For religious reasons. For privacy reasons. For the cause of liberty and freedom and in protest of the idea that the federal government (under one party rule, no less), can force private citizens to purchase anything with our own money. Are we citizens or subjects? Mice or (wo)men? Just say NO to socialism and to the corrupt, unionized, far left IRS: the gestapo of America’s political class. Afraid of arrest? not to worry! After all, the federal government ignores millions of illegals who are breaking U.S. immigration law every day. Our Founders pledged their lives, their fortunes and their sacred honor. All we have to do is just say no to a scheme we all know is un-American and a violation of our most basic founding fundamentals of privacy, self reliance, limited government and individual freedom.
How To Opt Out Of Obamacare. Know your options and become savvy self-pay patients. Join a health care sharing ministry. These are voluntary, charitable membership organizations that agree to share medical bills among the membership. They function similar to insurance, and are probably the best alternative to conventional health insurance. There are four of them, at least that I know of. Three are open only to practicing Christians (Samaritan Ministries, Christian Healthcare Ministries, and Christian Care Ministry) while a fourth, Liberty HealthShare, is open to anyone who agrees with their ethical commitment to religious liberty. They operate entirely outside of Obamacare’s regulations, and typically offer benefits for about half the cost of similar health insurance. Members are also exempt from having to pay the tax for being uninsured. From the article by Sean Parnell http://thefederalist. com/2013/12/04/opt-obamacare/#.Up9MwGKiM_o.email

devan95 on May 10, 2014 at 7:57 PM

assuming there is time left for any viable action to be taken.

But, that guy with the pen and the phone only needs a couple of hours to change things ….

AesopFan on May 10, 2014 at 8:33 PM

There’s already a Stop The Hit website where people can find out more and take action – assuming there is time left for any viable action to be taken.

The only “fix” I’m interested in is full repeal.
If people want to keep any part of this boondoggle, I think they should keep all of it.

DRayRaven on May 11, 2014 at 9:55 AM

The gift that keeps on giving

gwhh on May 11, 2014 at 10:46 AM

If you lackedcouldn’t afford a seat at that table, the results are now becoming obvious.

FIFY.

This is “situation normal” in a socialist economy. Tough beans, little guy, right?

sixerfixer1976 on May 11, 2014 at 11:31 AM

ObamaCare is settled law, you see. It’s the law of the land and you all need to learn to simply move on with your lives.

The irony is that it isn’t the Law of the Land in that the socialists themselves aren’t implementing it fully; they’re cherry-picking what is politically expedient to enforce.

One of the other most corrupt Presidents in American history opined the solution: “The best way to get a bad law repealed is to enforce it strictly.” — U.S. Grant.

Just enforce it as it was written. Now. The rest will take care of itself.

sixerfixer1976 on May 11, 2014 at 11:41 AM

The current cherry-picking is being done by “executive order” (scare quotes intentional), and are not being challenged by Congress. Which is the largest problem right now with how the nation is being governed. It isn’t.

Twenty years from now, textbooks will include multiple chapters covering the years where the balance of powers was ignored, where the White House decided which laws were to be enforced, and against whom, while Congress debated phantom issues to maintain the appearance of doing business.

Freelancer on May 12, 2014 at 8:58 PM