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What Job Creators and Economists are Saying About the Democrats’ Health Care Law and Jobs

January 26, 2011

As the Ways and Means Committee holds its first health care hearing of the 112th Congress – focusing on the impact of the Democrats’ health care law on employers and workers – here is a look at what many employers and economists are saying about the law:

Small Business Coalition for Affordable Health Care
“The self‐employed and small business community could not be more honest about the destructive effects the PPACA places on the nation’s job creators.  This law is loaded with new mandates, new taxes and perverse incentives that will forever harm the workplace and the relationship between employers and their employees.”

National Federation of Independent Business (NFIB)
“Small business owners understand that PPACA is a fatally-flawed solution that they do not want and cannot afford.  NFIB recently balloted its members, and 93% agreed that Congress should repeal the new law.”

Retail Industry Leaders Association (RILA)
“The health care reform bill signed into law last year fell short of our core needs as health care costs continue to escalate, the ability to custom tailor plans affordable for employees has diminished dramatically, and the government now has an unprecedented role in what was once a voluntary offering by our companies.  For these reasons, we urge members of both parties to build upon the successes of the new law and rewrite.”

“We are opposed to any unforgiving mandate which levies a penalty should even one employee fall below an arbitrary threshold.  We also cannot stand for a law that will subject employees to a “revolving door” effect of employer-sponsored and exchange-based plans.”

National Retail Federation (NRF)
“NRF has worked closely with the Obama Administration where possible to help smooth implementation of the law.  We appreciate the Administration’s cooperative efforts to date.  Nevertheless, we are convinced that the health reform law is in the whole misplaced and will hazard future job and economic growth.  We strongly support this effort to repeal and replace the health reform law with more job-friendly health care reform that will concentrate first on reducing the cost of medical care.”

Letter from 200 Economists
“A Barrier to Job Growth: The Patient Protection and Affordable Care Act contains expensive mandates and penalties that create major barriers to stronger job growth. The mandates will compete for the scarce business resources used for hiring and firm expansion. The law also levies roughly $500 billion in new taxes that will enter the supply chain for medical services, raising the cost of medical services.  At the same time that businesses juggle the potential for higher interest rates or higher taxes, these medical costs will translate to higher insurance premiums, further increasing the cost of operating a business in the United States.”