The small-business community has revved up its campaign to repeal a tax on insurance companies intended to help finance subsidies for the uninsured, a part of President Obama’s healthcare reform that would take effect in 2014.
Congress expected the tax to raise some $87 billion over the 10 years the subsidies were funded. It is aimed at insurance carriers, but the small-business advocates argue that it will really fall on business owners, since insurers will pass it along in the form of higher premiums to owners and their workers. They don’t like that one bit, and have labeled it HIT, as in Health Insurance Tax.
All this might be unremarkable—just another story about businesses complaining about taxes—except that the press figures heavily into the group’s campaign strategy. Amanda Austin, federal public policy director for the National Federation of Independent Business, is quite frank about it: “We see the media as a conduit for us,” she explained. Her group is spearheading a coalition of 35 members to repeal the tax.
“We have tried to provide much validity to the issue by citing multiple data sources, and we hope that the media look at that as an opportunity to report on our issue.” Translation: The “Stop the HIT” campaign aims at us. “The media give a voice to small business owners that don’t have one without you,” Austin told me.
To that end, the campaign uses a variety of tools to reach reporters. Over the past two months, for example, I have received 11 press releases or alerts from the coalition, whose members include such trade associations as the American Farm Bureau Federation, the Society of American Florists, and one of the biggest stars in the trade group universe, the US Chamber of Commerce. The Chamber is a master at issue advocacy campaigns that enlist millions of businessmen and women in their causes. During health reform, the Chamber worked its grassroots connections to defeat a public option. Austin claims the coalition can ultimately tap six million businesses and 15 million self-employed people “as a greater voice.”
They’re good at this, too. The press releases are short, snappy, and designed to grab the attention of reporters in need of a quick story. They supply lots of figures to bolster the coalition’s case. Among its claims: the tax “will lead to $30 billion in lost sales annually for small businesses by 2021”; it will “reduce private sector employment by up to 249,000 jobs” by 2021; it will add “$500” to the cost of a family policy for an average worker at a small business; it will raise the cost of employer-sponsored insurance “by 2 to 3 percent.”
Those “facts” are repeated in many of the releases, reinforcing the message that the tax must go. Some releases are pegged to news events, like the Labor Department’s unemployment reports. The headline for an April press release advises journos that the “Jobs Report Reminds Small Businesses That HIT Will Hurt.” The headline for a release sent around tax time noted that “Small Businesses Urge Repeal of Health Insurance Tax on Tax Day.” And when President Obama spoke at the State University of New York this week, the coalition issued a release urging the president to address the “threatening tax in New York.”
The campaign also uses “fly-ins”—locals who are flown to Washington to chat with their Congressional representatives or testify at hearings. One press release advised that the Vice CEO of a home building firm in Rockville, MD, told Congress that “any additional cost item that’s placed on us such as that will make it difficult for us to continue and survive.” Fox News covered the hearing before the House Small Business Committee, reporting on the testimony of a tax consultant for small businesses who said that proposed tax increases in the Affordable Care Act will change the way businesses view each expenditure and cause them to be risk averse. Translation: the tax might deter them from hiring.