Congress Considers Repealing Tax on Insurance Companies to Aid Small Businesses

On Capitol Hill, Congress is considering repealing a tax on health insurance companies that is scheduled to take effect next year, and the move is being applauded by many small business owners. 
This tax, also known as the health insurance tax, charges health insurance companies based on the types of plans they sell in the fully insured market.
 
As the biggest segment the fully insured market, small business owners have objected to the tax; they suspect that cost will show up in their premiums.  Larger companies often have the option to insure their own employees, which means that they likely won't feel the health insurance tax's possible impact.
 
Support for repealing the tax comes mostly from Republicans, but several Democratic senators have signed on to the cause after hearing testimonials from small business owners, according to an article from the Washington Post.
 
The tax was designed to create revenue to fund Obamacare, and the repeal up for discussion does not propose an alternative source of revenue, which the Congressional Budget Office projected to be $101 billion over 10 years. 
 
 

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