The National Federation of Independent Business projects that between 152,000 and 286,000 jobs will be lost by 2023 due to Obamacare’s health insurance tax. NFIB, a nonprofit association of business owners, actively supports the repeal of the tax.
The health insurance tax has proved to be one of Obamacare’s more controversial fundraising measures. The tax targets insurance companies, charging each one proportional to their market share — the more health plans sold (Obamacare’s goal, the more insurers are required to pay.
The report found that the tax will cause a spike in the cost of employer-sponsored health coverage, which will lead primarily small businesses to cut jobs. NFIB estimates that 57 percent of the job losses will come from small businesses — firms with under 500 employees, according to the federal Small Business Administration.
The cut in employment would results in a reduction of U.S. real output, or sales, of between $20 billion and $33 billion through 2023.