New Bill Repealing HIT Good for Farmers/Ranchers
February 22, 2013
Legislation introduced in the U.S. House of Representatives is a major step for farmers, ranchers and small businesses that would otherwise be negatively impacted by healthcare reform, according to the American Farm Bureau Federation (AFBF). The Jobs and Premium Protection Act of 2013, introduced by Reps. Charles Boustany (La.) and Jim Matheson (Utah), would repeal the Health Insurance Tax (HIT).
A recent Congressional Budget Office report confirms that the HIT Tax "would be largely passed through to consumers in the form of higher premiums for private coverage." The new tax would raise insurance costs even more, making it harder for farmers and ranchers to purchase coverage for themselves, their families and their employees.
The HIT was passed as part of the Patient Protection and Affordable Care Act (PPACA). According to AFBF, it has nothing to do with reforming the health care insurance system but was included in PPACA as a way to raise revenue to offset the cost of the legislation. During 2014, the first year that the HIT takes effect, $8 billion dollars will be collected.
Reprinted in part from the AFBF