Washington, D.C. , May 5 -

During his State of the Union Address in January, President Barack Obama promised the American people that jobs would be his number one focus in 2010.  His Administration pledged that the agenda in Washington would “pivot” to address high unemployment and help the stagnant economy.  However, instead of making good on his promise, the President spent the first quarter of the year doubling-down on unpopular plans for a job-killing government takeover of health care.

The final health care legislation that passed the House on March 21st and became law on March 23rd is full of bad policies.  It will raise health insurance premiums, add billions to our national debt, and hike taxes.  It creates impossible new regulations and mandates for small businesses.  Not only will this new law dramatically increase the role of government in health care and trap Americans in a web of bureaucratic red tape, it is virtually guaranteed to crush job creation and stifle small business innovation nationwide. 

As ranking member of the House Small Business Committee, I know that entrepreneurs need certainty in this unsteady economy. Business owners are hesitant to hire workers, borrow money or expand operations because they are unsure whether a stable economic recovery is underway.  This uncertainty stems directly from damaging Washington initiatives like the health care takeover that threaten investment and growth.

Right now, businesses are facing more uncertainty than ever as we try to understand the impact that the new health care law will have on our families, our communities, and our economy.  The nonpartisan Congressional Budget Office (CBO) projects the law will cost $940 billion dollars over the next decade.  Add in the reconciliation bill that included a package of “fixes” to the underlying health care legislation, and the cost for this health care overhaul jumps to $1.2 trillion. All that money has to come from somewhere, so the law includes $569.2 billion in tax increases that will fall heavily on small businesses and other employers.

 The new law requires employers to pay a “fair share” tax of $2,000 per employee if they cannot afford to offer “acceptable” health care coverage.  More than 219,000 American small businesses could be subject to this employer mandate.  In another blow to small business owners, new restrictions will be imposed on Health Savings Accounts (HSAs), Medical Savings Accounts, Flexible Spending Arrangements (FSAs), and Health Reimbursement Arrangements (HRAs), further limiting employers’ ability to offer affordable benefit plans that best meet their workers’ needs. 

All these new regulations and restrictions will make it more difficult for small businesses to hire new workers, expand their operations, and offer competitive wages.  With unemployment still hovering around ten percent, families and businesses cannot afford more regulations and red tape from Washington that will make jobs more scarce and further slow our economic recovery. 

My Republican colleagues and I tried repeatedly to reach across the aisle to craft a better bill that would increase access and lower costs for all Americans, without piling more unsustainable debt on future generations.  It is disappointing that, rather than listen to their counterparts and the American people, the President and Majority chose to push a completely partisan, wildly unpopular bill through the People’s House.

If the President is serious about helping small businesses and reducing unemployment, then he should challenge provisions in the new health care law that will pile more taxes and mandates on Main Street.  While we need to take steps to improve the nation’s health care system, punishing our small businesses by forcing them to carry the financial burden is something our economy cannot afford.