The House Health Fix: Even Higher Job Killing Employment Taxes

Robert Book / March 18, 2010

While the House reconciliation bill keeps many of the Senate provisions that will already slow economic growth, the reconciliation bill goes even farther in punishing employers who do not offer sufficient health care. These penalties will slow employment growth and given employers a disincentive to hire anyone who purchases subsidized health care.

Punishing Businesses That Hire Low-Income Workers
Businesses that already offer insurance can be affected by the reconciliation bill. Even if the employer does provide health insurance, if any employees qualify for, and accept, a premium subsidy on the basis of their family size and family income, the employer will have to pay a penalty of $3,000 per year for each qualifying employee. Even more businesses are in danger of this penalty since the reconciliation bill ups the subsidy amount, meaning that more workers could take it. This penalty depends not on how much that employer pays, (more…)