Small Business KEY VOTE Against the "Deem-and-Pass" Rule

...entrepreneurs and job creators not fooled by spineless strategy that gives nod to costly Senate bill, while piling on reconciliation measures that further increase premium costs, impose additional regulatory burdens, mandates and punitive taxes 

Dear Member of the U.S. House of Representatives:

The Small Business & Entrepreneurship Council (SBE Council) will KEY VOTE against the Rule "deeming" the Senate health overhaul bill passed.  Our nationwide membership of 80,000 small business owners and entrepreneurs are not amused by this legislative hoax.  A vote FOR the Rule is a vote FOR the costly and punitive Senate bill (H.R. 3590).

H.R. 3590 imposes burdensome taxes and regulations that will kill jobs, punish small business owners, and increase health insurance costs for our nation's entrepreneurs. 

It will further deprive small business owners of the capital they need to make it through this challenging economy.  The legislation will add to business costs, and force entrepreneurs to comply with complex and burdensome regulations - robbing them of the precious time and capital they need to survive, grow and create jobs.  New mandates on business owners and the self-employed will require them to purchase government-approved insurance whether they can afford to or not.  There is nothing small business friendly about this legislation.

By any measure, the bill is an absolute failure in helping to relieve small business owners from crushing health insurance costs and government-imposed burdens.  The legislation will only exacerbate existing conditions, which will lead to business failures, job loss, anemic investment and diminished entrepreneurship.

Furthermore, advancing the Rule "deeming" the Senate bill passed provides for consideration of a misguided reconciliation bill.  This legislation, the "Health Care Education and Reconciliation Act of 2010 (H.R. 4872), piles on more pain for small business owners while creating additional sweetheart deals.

Incredibly and astoundingly, the reconciliation bill expands the Medicare payroll tax to all investment income for individuals with incomes over $200,000 and families with incomes over $250,000. Because the tax is not indexed for inflation, more families and individuals will be trapped into the tax over time (think AMT).  This tax punishes hard work, investment, sacrifice and thrift.  It will raise the cost of capital for small business owners and entrepreneurs, and make the U.S. less competitive.  Job creation and investment will suffer, and markedly so.

The reconciliation bill also increases the tax on health insurers, further hikes taxes and fees on drug makers and medical devices which means these costs will be passed on to small business owners in the form of higher insurance premiums and health care costs.

In addition, the reconciliation bill triples the penalties (from $750 to $2,000) on business owners who cannot afford to provide their employees with government-approved insurance.  The measure is a job killer, plain and simple.  The self-employed, many of whom are already struggling under harsh economic conditions and a tax and regulatory system that impedes their growth, will get hit with an individual mandate to purchase insurance. Even with the so-called subsidies (most will not even qualify) these hard-working entrepreneurs will not be able to afford a government-approved policy. Subsequently, many will get hit with an expensive penalty. This is simply unfair, and is not what we want or need from health care reform.  

On behalf of small business owners and entrepreneurs, I implore you to vote against the Rule "deeming" the Senate bill (H.R. 3590) passed and giving a green light to a reconciliation bill (H.R. 4872) that hits struggling small business owners with more painful burdens and higher insurance premium costs.  A vote for the Rule is a vote against our nation's small business owners.

Sincerely,

Karen Kerrigan, President & CEO