Lifting the Burden of the Affordable Care Act

The Honorable Mitch McConnell
Majority Leader
United States Senate
Washington, D.C. 20510

The Honorable Kevin McCarthy
Minority Leader
U.S. House of Representatives
Washington, D.C. 20515

Dear Majority Leader McConnell and Minority Leader McCarthy:

On behalf of the millions of taxpayers and supporters represented by our organizations, we urge you to continue your focus on lifting the Affordable Care Act’s (ACA’s) burdens off of our economy, businesses and health care consumers. We appreciate your work over the years to relieve taxpayers and consumers from the ACA’s taxes and higher costs. While much work has been done to improve choices and lift costs, much work remains to fully relieve taxpayers and consumers from the assorted taxes and mandates imposed by the ACA.

We write today to remind you of the burdens of the health insurance tax (HIT), its disproportionate impact on small businesses, the self-employed and seniors, and the need to take immediate action to relieve families and small businesses from this tax.

Thankfully, there is bipartisan support for repealing the HIT (S.80/H.R. 2447), and for extending the current moratorium for two years (S.172/H.R. 1398). Taking action on the HIT this year, will help to fuel small business confidence into 2020, and ensure our economy continues to benefit from the tax and regulatory policies championed under your leadership and President Trump.

If allowed to return in 2020, the HIT will add approximately $16 billion to the cost of coverage for individuals, small businesses and Medicare Advantage seniors, which amounts to an increase of between $400 to $500 on health insurance premiums. Half of this insidious tax is paid by individuals and families with incomes between $10,000 and $50,000. Small businesses are targeted by this tax, as the HIT is levied on the fully-insured market, where 87% of small businesses purchase their health insurance.

The failings of the ACA must continue to be addressed as Republicans advocate for common-sense reforms that lower costs, improve choices and fuel innovation in our health care system. Prioritizing the delay and repeal of ACA taxes in 2019 – including the burdensome and unfair HIT – bolsters the core contention, and fact, that more government is not working for our health care system. Moreover, small businesses and seniors cannot afford these higher costs.

Thank you for your continued support of pro-taxpayer, pro-small business policies.


Grover Norquist
Americans for Tax Reform

Saulius “Saul” Anuzis
60 Plus Association

James L. Martin
60 Plus Association

Jeffrey Mazzella
Center for Individual Freedom

Thomas Schatz
Council for Citizens Against Government Waste

Jason Pye Vice
President, Legislative Affairs

Grace-Marie Turner
Galen Institute

Pete Sepp
National Taxpayers Union

David Williams
Taxpayers Protection Alliance

Karen Kerrigan
President & CEO
Small Business & Entrepreneurship Council

*Affiliations are listed for identification purposes only.

cc: President Donald Trump
Vice President Mike Pence