On Thursday, 36 conservative groups and activists urged House Speaker Paul Ryan (R-Wisc.) and Senate Majority Leader Mitch McConnell (R-Ky.) to delay the impending harmful, destructive Obamacare taxes – if they can’t find their way to repeal them.
Led by Americans for Tax Reform, the groups sent a letter to Ryan and McConnell warning them of the devastating effects the health care insurance tax and medical device tax will have on middle-class Americans, senior citizens, jobs and the economy if they’re allowed to kick in on January 1, 2018:
- Half of the tax is paid by those earning less than $50,000 a year and it will increase premiums by $5,000 per family over the next decade.
- The tax hits 11 million households that purchase through the individual insurance market and 23 million households covered through their jobs.
- The tax will total $14.3 billion in 2018.
- Over a decade, these taxpayers will pay roughly $150 billion.
- The tax will directly impact as many as 1.7 million small businesses.
- The tax could cost up to 286,000 in new jobs and cost small businesses $33 billion in lost sales by 2023.
- The 2.3 percent medical device tax will harm more than 6,500 medical device companies in the U.S., 80 percent of which have fewer than 50 employees.
- The medical device tax could lead to more than 25,000 lost jobs by 2021.
- Over the next decade, this excise tax is projected to increase taxes by $30 billion.
- The tax impairs the medical device industry's ability to innovate, invest, and create jobs.
The letter says that full repeal of the Obamacare taxes is needed – but, if Congress can’t manage that, it should at least stop the harmful insurance and medical device taxes from taking effect at the start of next year:
“Ideally, both the health insurance tax and medical device tax should be repealed permanently, as should all one trillion dollars of Obamacare taxes.
“However, given the recent collapse of healthcare reform legislation, lawmakers should act to delay these two taxes so they do not hit taxpayers in 2018.”
“The last thing taxpayers need is even more taxes to go into effect,” the letter concludes.