POSTED: Wednesday, April 3, 2013 - 6:15pm
UPDATED: Thursday, April 4, 2013 - 9:30am
Tyler, Tx — President Obama's Patient Protection and Affordable Care Act included more than $1 trillion in tax hikes. One of the largest tax hikes in this act is the Health Insurance Tax, also referred to as "HIT". This tax increase will go into effect January 2014 , and for the next ten years is estimated to reach $102 billion.
While this tax increase technically falls on the shoulders of the insurers, many fear these costs will trickle down onto businesses and employees. In fact, the National Federation of Independent Business estimates that by 2022 the private sector will cut up to 262, 000 jobs by 2022. This study also estimates that Texas will lose 14,000 jobs by 2022.
Mechele Mills of Better Business Bureau explains this tax will effect some more than others, saying, "Small businesses in particular and sole proprietors' concern is that they may be forced to pass those costs onto their employees and reduce their take home pay."
Although there are some Health Care professionals who believe it is not just "HIT" Texans should worry about, but rather the entire Affordable Care Act. Mark Everett of Hilliard Box Insurance tells KETK," I believe that could happen. Maybe not necessarily because of the Health Insurance Tax but more importantly because of the increased cost of health insurance itself, because of the plan design and the Affordable Care Act."
Although this tax does not take effect until early next year, Mills advises those worried about this increase should prepare by investing wisely, paying down any debt, and be make good decisions with current resources.