Ohio's 8th Congressional District Blog

Perfect Storm: Democrats’ Gov’t Takeover of Health Care Hammers Small Businesses
Posted by Press Office on October 19, 2009

With out-of-work families continuing to ask “where are the jobs,” we know that it’s the nation’s small businesses that have borne the brunt of recent job losses.  That’s one reason it’s so troubling that Democrats in Washington are pressing ahead with a costly government takeover of health care that will squeeze the nation’s entrepreneurs further, keep people out of work longer, and pile up more debt on our children and grandchildren.  At the heart of the Democrats’ plan are a massive tax increase that will fall heavily on entrepreneurs who run small businesses and a harsh mandate that requires employers to provide health care or face a steep penalty.  According to a model developed by Dr. Christina Romer, the chair of the White House Council of Economic Advisors, the Democrats’ health care plan will destroy as many as 5.5 million American jobs over the next 10 years.  House Republicans have proposed better solutions to help small businesses create jobs and provide quality, affordable health care to their employees.

Congressman John Boehner (R-West Chester), a former small business owner, commented on how Democrats’ costly government takeover of health care will harm America’s small businesses:

“Having run a small business, I know what it’s like to have your plans hampered by the government’s latest round of red tape.  Our small businesses, however, have seen nothing that approaches the perfect storm of taxes and mandates in Democrats’ costly government takeover of health care.  Under the Democrats’ plan, health care costs will go up and countless small business jobs will destroyed.  At a time when out-of-work families are asking, ‘where are the jobs,’ the Democrats’ costly government takeover of health care will keep people out of work longer.  Republicans have offered better solutions to help small businesses create jobs and provide quality, affordable health care to their employees and their families.”

DEMOCRATS’ COSTLY GOV’T TAKEOVER OF HEALTH CARE HAMMERS AMERICA’S SMALL BUSINESSES:

  • Massive tax increases.   House Democrats pay for their costly government takeover of health care in part by imposing a massive new tax – up to an additional 5.4 percent – that will hit small businesses and manufacturers hard.  The National Federation of Independent Business (NFIB), the nation’s leading small business association, commissioned a survey of small business owners and found that “the businesses that are most likely to be hit by this tax increase employ about a quarter of the U.S. work force.”  Additionally, the National Association of Manufacturers (NAM) found that the tax increase would affect more than two-thirds of all American manufacturers.

 

  • Burdensome, job-killing mandates.   Democrats also want to impose burdensome mandates on businesses that cannot afford to pay for employee health care coverage deemed acceptable by Washington.  This will directly curtail job creation, according to an analysis by the Heritage Foundation: “the mandate increases the marginal cost of each additional worker, making it less likely that small businesses will hire new employees or give raises to existing ones in a weak economy.”  What’s more, the non-partisan Congressional Budget Office has stated that these mandates “could reduce the hiring of low-wage workers.”

 

  • Government-run insurance company that would restrict choice and competition.  A broad-based coalition of employer groups representing almost every segment of our economy and employing millions of Americans sent a letter to Congress raising serious concerns about Democrats’ plans to create a government-run insurance company: “Another troubling provision is the creation of a new government-run insurance plan.  Employers currently suffer a significant cost-shift from existing public programs, and the program described in House legislation would significantly increase costs for every American who purchases private insurance.  We are also concerned that the government plan will not be a fair competitor, and employers will not be able to continue offering their current plans, which cover more than 170 million Americans.”

House Republicans have proposed better solutions to help small businesses create jobs and provide quality, affordable health care to their employees, including genuine legal reform, policies that incentivize wellness, and expanded health savings accounts (HSAs) to provide additional flexibility to small businesses. 

 

 

Comments
The opinions expressed below are those of their respective authors and do not necessarily represent those of this office.
  • Doug Ebel commented on 10/21/2009
    The democrats have 5 x 1000+ page bills. Republicans need to differentiate themselves and boil health care down to a single page that perhaps 75% of the Democrats could read and 50% of them could understand what they are voting on. They should focus on fixing what is broken to drive down costs: 1) Insurance companies operate over state lines and thus are clearly interstate commerce which Feds have the right to regulate. We should open up competition. 2) Hospital care for those that can't pay is an unfunded federal mandate that represent a hidden tax to all of us. We should provide federal clinics in large metro areas and subsidies for rural areas to implement this mandate. (The mandate is probably unconstitutional but is reasonable and compassionate. If liberals believe government is so good at running a health care system, let them start on those that have none) 3) Tort reform for health care providers. 4) Review/Simplification of FDA procedures to reduce costs and speed up availability of new drugs. 5) Provide standardized interchange of medical information between providers, payers, and patients 6) Publish cost effectiveness and care effectiveness ratings of health care providers. (Summarized data is a byproduct of #5). Data should be detailed, from aspirin to heart transplant. Cost: A few billion for all except #2 - federal clinics. Cost will be substantially less than the $20k/person represented by $800B/40k people ... actual number is $800B * 10 Years / (40k people * 4 years of coverage) = 50K/person since taxes are front loaded and benefits occur later.
  • Suzanne Whitt commented on 10/26/2009
    I want you to vote for the public option in health care. health care goes up in price every year. But the only way we will get the public option is if we take health care away from congress and the senate. let you guys fight for fair pricing. You get your health care for 503$ ayear. we pay that much a month. I am ashamed of the way Ohio and you republicans treat or president!!!1
  • Richard Putz commented on 11/5/2009
    Oh my gosh As a Republican I can't believe you do not know the difference between the preamble of the declaration of Independence and the Constitution are you trying to Kill us out here?
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