Please see below for a fact check on remarks made just now by Senator Kyl on the Senate floor, incorrectly stating that health insurance reform would raise taxes:

RHETORIC: Sen. Kyl Claimed That Health Reform Bill Contains “A Litany Of New Taxes.” “They want jobs.  They want the economy improve. They want meaningful health care reform that will drive down costs and increase their access and avoid harming a full economic recovery. What they don’t want is to be burdened with a litany of new taxes. Unfortunately, the health care bill that we’ve been debating is layered with new tax after new tax.” [Senate Floor, 12/13/09]

REALITY: HEALTH REFORM BILL WILL CUT COSTS FOR FAMILIES, BUSINESSES AND EASE BURDEN, NOT RAISE TAXES

Based On CBO Estimates, Under Senate Bill, Individuals Would Save From $200 To $2,500; Families Would Save $500 To $7,500 – “In Addition To The More Generous Benefits That These Groups Will Receive Through The [Health Insurance] Exchange.” Jonathan Gruber, MIT professor of economics and a health economics specialist wrote on the updated CBO estimates of the Senate health reform legislation: “I find that the savings are large for both singles and families, and that they are particularly large for the lowest income families that qualify for premium credits under the Senate Bill but would be left to face the full high non-group premium without legislation. In particular, I find that the single individual would save over $2,500 at low incomes (175% of poverty), and would save $200 even at higher incomes (425% of poverty or higher). For families, the savings are much larger, ranging from nearly $7,500 for low income families (at 175% of poverty) to $500 for higher incomes (425% of poverty of higher). It is worth noting that these savings are all in addition to the more generous benefits that these groups will receive through the exchange compared to the non-group market.” [Gruber, 11/27/09]

CBO On Senate Bill: $27 Billion For Small Business Tax Credit. In its estimate of the Senate reform bill, CBO wrote: “The other main element of the coverage provisions that would increase federal deficits is the tax credit for small employers who offer health insurance, which is estimated to reduce revenues by $27 billion over 10 years.” [Congressional Budget Office, 11/18/09]

CBO: $338 Billion In “Premium And Cost Sharing Subsidies” For People Purchasing Insurance Through Exchanges. [CBO Estimate, 11/18/09]

CBO On Senate Bill Included $27 Billion Small Business Tax Credit For Providing Coverage. In its estimate of the Senate reform bill, CBO wrote: “The other main element of the coverage provisions that would increase federal deficits is the tax credit for small employers who offer health insurance, which is estimated to reduce revenues by $27 billion over 10 years.” [Congressional Budget Office, 11/18/09]

Business Roundtable: Without Reform, Health Care Costs Rise To $28,530 Per Employee, 166% Higher; With Reform, Businesses Could Save $3,000 Per Employeee. A report from the Business Roundtable concluded that: “If the cost trends of the past 10 years repeat, by 2019, employment-based spending on health care at large employers will be 166% higher than today on a per-employee basis. This equates to an average of $28,530 per employee when employer subsidies, employee contributions, and employee out-of-pocket costs are combined. We estimate that if enacted properly, the right legislative reforms could potentially reduce that trend line by more than $3,000 per employee, to $25,435.” [Business Roundtable – Health Care Reform, 11/12/09]

  • Republicans Angry With Business Leaders For Not Accepting That Republican Leadership Knows More About How Health Reform Will Affect Companies. The Hill reported that, “[t]ension between Republicans and the nation’s top CEOs over healthcare reform escalated this week when the executives released a report praising aspects of President Barack Obama’s top initiative. Republicans in Congress and some of their business allies in Washington are fuming over a new report commissioned by the Business Roundtable (BRT), an organization that represents more than 50 of the nation’s biggest corporations. The report claims that parts of the Democratic legislation could cut healthcare costs substantially…A senior Senate GOP aide on Thursday said: ‘The bottom line is that these policies the administration is advocating is not going to be helpful to businesses. Is it disappointing that groups are cutting deals with the administration instead of looking at the realities of how the policies will affect their members? Absolutely.’…A former Senate GOP leadership aide said Republican leaders are ‘very angry’ with the Roundtable for working with the administration. ‘The relationship has been good until recently because they haven’t stepped up to the plate to help Republicans with the principles they both agree on,’ said the former aide. ‘The BRT is playing politics more liberally than our side thought they would have.’” [The Hill, 11/13/09]

Founder And CEO Of Small Business: “The Notion That Health Care Reform Is Bad For Small Businesses Is Little More Than A Purposefully Misleading Bag Of Rhetoric That Has Nothing To Do With The Real Issues Facing Small Businesses.” Jonathan Weber, the “founder, publisher, and CEO of New West,” a media company, wrote about his perspective about the need for health insurance reform for small businesses: “The National Federation of Independent Businesses says small businesses should oppose the legislation because it ‘fails to lower’ health care costs, ignoring the fact that there are a lot of issues here besides cost (see above)… the notion that health care reform is bad for small businesses is little more than a purposefully misleading bag of rhetoric that has nothing to do with the real issues facing small businesses. I desperately hope that most business owners see through it and communicate with their elected representatives accordingly.” [The Big Money, 7/27/09]

Study: No Health Insurance Reform Means Small Businesses Will Pay Nearly $2.4 Trillion In Healthcare Costs, Cost 178,000 Jobs. The Small Business Majority study commissioned a study from noted economist from Massachusetts Institute of Technology, Jonathan Gruber. The study found that, “without reform, small businesses will pay nearly $2.4 trillion dollars over the next ten years in healthcare costs for their workers. With reform, the study shows that small businesses can save as much as $855 billion, a reduction of 36 percent, money that can be reinvested to grow the economy.” The study also found that without reform, 178,000 small business jobs will be lost in 2018 as a result of healthcare costs, and with reform, up to 128,000 of those jobs could be saved. [The Economist Impact of Healthcare Reform on Small Business, 6/11/09]

Small Business Majority Study: With Reform, Small Business Will Save As Much As $855 Billion Over The Next 10 Years. Small Business Majority Study: “Without reform, small businesses will pay nearly $2.4 trillion dollars over the next ten years in healthcare costs for their workers. With reform, the study shows that small businesses can save as much as $855 billion, a reduction of 36 percent, money that can be reinvested to grow the economy.” [The Economic Impact of Healthcare Reform on Small Business, 6/11/09]

Survey: Even Though Over 80% Of Small Business Owners Say Health Insurance Would Help Attract Best Employees, 45% Say They Do Not Provide It Because It Is Too Expensive. A Wells Fargo / Gallup poll found that, “[e]ight in 10 small-business owners believe that having an adequate health insurance program would help their companies attract the best qualified employees (84%), reduce the likelihood that their employees would leave (83%), and would make employees more loyal to their companies (81%)…Although small-business owners acknowledge that their companies can obtain health insurance for their employees, 45% of those who say they do not provide insurance say it is because they cannot afford to do so.” [Wells Fargo / Gallup Poll, 10/5/07]

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