Senators Barrasso, Hatch, Snowe Introduce Bill to Repeal HIT

WASHINGTON, D.C., November 16, 2011 – United States Senators John Barrasso (R-WY), Orrin Hatch (R-UT), and Olympia Snowe (R-ME) today introduced legislation, The Jobs and Premium Protection Act, to repeal the onerous Health Insurance Tax (HIT) which takes $87 billion away from small business by the end of the decade, resulting in a job-loss of 125,000 to 249,000 jobs in the private sector in 2021, according to a study released by the National Federation of Independent Business Research Foundation; small business will shoulder 59 percent of this job-loss burden.

"The Health Insurance Tax is a Washington policy that will have a devastating impact on our nation's job creators," said Susan Eckerly, Senior Vice President of Public Policy. "The stark reality is that the country's economy is still reeling, and every single job matters; the last thing people in the unemployment line want to hear is that one less job will be created and even more will be shed as a result of the HIT.  Because of the leadership of Senators Barrasso, Hatch and Snowe, small-business owners now have bipartisan and bicameral legislation that will repeal this tax and protect their ability to continue to create vital jobs."

"Our legislation repeals this unfair, hidden tax on America's job creators, and will save thousands of jobs across the country," said United States Senator John Barrasso.  "This tax is just another example of how the President's trillion dollar health spending law is only making things worse for small businesses and their workers. With 9 percent unemployment, hardworking Americans cannot afford to be hit hard by even higher premiums.  We need to stop the HIT on our economy now - before it starts."

"Chock full of tax hikes, mandates and government overreach, the President's $2.6 trillion health spending law is an anchor around our economy's neck," said United States Senator Orrin Hatch.  "The health law's insurance tax is especially damaging, undercutting our economic recovery by increasing the cost of health coverage.  Money that could go to higher wages, new workers, or investment will instead go to pay this new tax.  With insurance premiums already skyrocketing and unemployment hovering at 9 percent, this tax makes no sense.  The President is demanding jobs legislation; he should start by supporting the repeal of this tax."

"Preventing the new health insurance tax is critical, especially in the current economic environment," said United States Senator Olympia J. Snowe.  "As the cost of health insurance continues to rise unabated - another 9 percent on average this year - individuals and small businesses are struggling to afford coverage.  Meanwhile, the Democrats' health care law is set to impose this $60 billion tax and the Director of the Congressional Budget Office has confirmed this tax will be paid by the individuals and small businesses who buy health insurance.  This tax could increase the cost of health insurance by 15 percent for small businesses, and kill hundreds of thousands of jobs.  I am proud to be a sponsor of the Premium Protection Act, and remain committed to repealing the job-killing health care law, as well as to repealing its worst pieces."

The Health Insurance Tax, which goes into effect in 2014, will cost small-business owners, their employees and the self-employed, $87 billion in the first ten years and $208 billion in the following ten years; the tax impacts 2 million small businesses, 12 million employees and the self-employed who purchase in the individual market and 26 million employees who are covered by their employer, resulting in a cost of nearly $5,000 per family over a decade.

The NFIB Research Foundation's BSIM (Business Size Impact Module) model suggests that such a price increase will reduce private sector employment by 125,000 to 249,000 jobs in 2021, with 59 percent of those losses falling on small business. The BSIM is a dynamic, multi-region forecasting model that analyzes the impact of policy "shocks" on the economy.  The BSIM is unique in ability among models to forecast the economic impact of policy on U.S. businesses differentiated by the size of the firm; in this case, small business is defined as those firms with less than 500 employees (Small Business Association definition).

Representative Charles Boustany (R-LA) has introduced legislation in the House, HR 1370, to repeal the Health Insurance Tax and his legislation currently has 78 bipartisan cosponsors, leading the way for a bicameral and bipartisan repeal of the Health Insurance Tax.

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In addition to this capital advance, three-year rental subsidy will help cover rent and operating costs

WASHINGTON - More very low-income senior citizens in Iowa will have access to affordable supportive housing thanks to $2.3 million in housing assistance announced today by the U.S. Department of Housing and Urban Development (HUD). These funds will help non-profit organizations produce accessible housing, offer rental assistance, and facilitate supportive services for the elderly

The grant funding awarded under HUD's Sections 202 Supportive Housing program will kick start construction or major rehabilitation for more than 97 housing developments in 42 different states and Puerto Rico.  In Iowa, 15 additional elderly households will be affordably housed with access to needed services in Burlington where "West Central Illinois Area Agency on Aging" was awarded $2,147,500.

"The Obama Administration is committed to helping our senior citizens find a decent, affordable place to live that is close to needed healthcare services and transportation," said HUD Secretary Shaun Donovan.  "Recent bipartisan changes to HUD's supportive housing programs will allow us to better serve some of our more vulnerable populations who would otherwise be struggling to find a safe and decent home of their own."

In Burlington, the capital advance funds will be used to construct a single story 15 unit facility and an additional $156,300 three-year HUD rental subsidy will help cover rent and operating costs.  The one-bedroom units will feature adjustable height shelving, lever handles and be designed for wheelchair adaptability.  The project is in close proximity to a grocery store, wellness center, and other desirable neighborhood amenities.  Residents will have access to a daily door-to-door transport service.

Enacted early this year with strong bipartisan support, the Frank Melville Supportive Housing Investment Act and the Section 202 Supportive Housing for the Elderly Act provided needed enhancements and reforms to HUD's programs.  Nonprofit grant recipients will now receive federal assistance that is better connected to state and local health care investments, allowing greater numbers of vulnerable elderly individuals to access the housing they need even more quickly.

Section 202 Capital Advances will provide $545 million nationwide to 97 projects in 42 States and Puerto.  In addition to funding the construction, acquisition, and rehabilitation of multifamily developments, HUD's Section 202 program will also provide $54 million in rental assistance so that residents only pay 30 percent of their adjusted incomes.  Section 202 provides very low-income elderly persons 62 years of age or older with the opportunity to live independently in an environment that provides support services to frail elderly resident.

HUD provides these funds to non-profit organizations in two forms:

• Capital Advances.  This is funding that covers the cost of developing, acquiring, or rehabilitating the development.  Repayment is not required as long as the housing remains available for occupancy by very low-income elderly persons for at least 40 years.

• Project Rental Assistance Contracts.  This is funding that goes to each development to cover the difference between the residents' contributions toward rent and the cost of operating the project.

Residents must be "very low income" with household incomes less than 50 percent of their median for that area.  However, most households that receive Section 202 assistance earn less than 30 percent of the median for their area.  Generally, this means that a one-person household will have an annual income of about $13,500.

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