WASHINGTON, D.C. – The American Bakers Association (ABA) fully supports the Small Business and Family Relief Act, a bipartisan bill introduced this week that will delay the health insurance tax by two years. “While ABA strongly supports a full repeal of the tax, a two year delay is a major step in the right direction,” said Robb MacKie, ABA President and CEO. “This delay will help bakers better understand myriad regulations coming their way regarding the Affordable Care Act, and allow Congress more time to address some of the more onerous provisions within the law.”
Starting in January 2013, health insurance companies must pay a new tax on the benefits they provide to individuals, families and small and mid-size employers. This new tax starts at $8 billion in 2014 and rises to $14.3 billion in 2018. The Congressional Budget Office says that the tax will be largely passed through to consumers in the form of higher premiums, increasing health care costs to bakers and other manufacturers alike. For example, one study shows that the tax will increase the cost of small group family coverage by $360 in 2014 and $6,830 over the next decade.
“ABA will continue to urge Congress to address this and many other concerns within the Affordable Care Act,” added Mr. MacKie. “It is our hope that the bipartisan support of this legislation will help both the Senate and the White House see the need to act quickly to prevent another economic hit to bakers and all other manufacturers.”
About the American Bakers Association:
The American Bakers Association (ABA) is the Washington D.C.-based voice of the wholesale baking industry. Since 1897, ABA has represented the interests of bakers before the U.S. Congress, federal agencies, and international regulatory authorities. ABA advocates on behalf of more than 700 baking facilities and baking company suppliers. ABA members produce bread, rolls, crackers, bagels, sweet goods, tortillas and many other wholesome, nutritious, baked products for America’s families. The baking industry generates more than $102 billion in economic activity annually and employs more than 633,000 highly skilled people.
Source: American Bakers Association