STEWARD STUDY: HEALTH CARE OVERHAUL PLANS INCLUDE HIDDEN COSTS FOR NEW HAMPSHIRE’S BUSINESS COMMUNITY
Economists’ Report Tells Granite State Businesses to Brace for Hundreds of Millions in New Taxes
CONCORD, NH – New Hampshire businesses would have to pay as much as $229 million to comply with Democrat plans to overhaul America’s health care system, according to a report released today by Concord-based STEWARD of Prosperity. Additionally, the creation of three new marginal tax rate brackets could result in Granite State businessmen and women facing a 47.25% federal income tax rate – putting the state behind European countries like France and Italy in terms of competitiveness.
“We all know that Democrat health care proposals are bad for patients, but this report reveals how ruinous their plans would be for Granite State businesses,” said Fred Tausch, of Merrimack, STEWARD of Prosperity’s founder. “Imposing expensive federal mandates and higher taxes on New Hampshire business owners would discourage job creation at a time of high unemployment. Moreover, legislation that would make New Hampshire’s business climate less competitive than France’s is unacceptable.”
The report, produced by Haverhill, NH-based economists J. Scott Moody and Dr. Wendy P. Warcholik, examines the “play-or-pay” mandate and income tax surcharges included in “America’s Affordable Health Choices Act” (H.R. 3200) – health care reform legislation currently pending in the U.S. House of Representatives. Their warning: “New Hampshire’s Congressional delegation should reflect long and hard before working against the long-term efforts of New Hampshire’s state and local governments to keep the state economically competitive… higher income tax rates at the federal level will harm New Hampshire’s international economic competitiveness.”
Highlights of the report, entitled “Federal Health Care Reform Includes Hidden Penalties for New Hampshire Businesses,” follow:
-
The “play-or-pay” health insurance mandate for employers being considered by Congress would cost Granite State businesses $215 million to $229 million.
-
As a result of a proposed income tax surcharge that would create three new marginal tax rate brackets, New Hampshire businesses that file through the individual tax code would face a combined income tax rate of 47.25%
-
In a survey of American states and Organization for Economic Cooperation and Development nations, this higher tax rate (47.25%) would place New Hampshire behind Canada (46.41%), France (45.8%) and Italy (44.9%) in terms of combined federal, state and local income tax rate burdens.