National business groups on Wednesday roundly criticized a
new House Democratic health care plan, blasting in separate
letters to Members proposals to raise taxes and to create a
public insurance option.
The
National Association of Manufacturers on Wednesday fired off
the first letter to Members around midday. The
organization's letter, signed by NAM Executive Vice
President Jay Timmons, stated that portions of America's
Affordable Health Choices Act would "not only threaten
sustainable growth and job creation, but also our economy's
ability to recover at all."
NAM
spokesman Hank Cox said his group is holding off on the big
ammunition for the time being. NAM does not have any
immediate plans, Cox said, to air television advertising
aimed at turning public opinion against the Democratic
proposal. But, he added, "we wouldn't rule it out." "You can
assume that we've got this thing in our sights and that we
see this as a deadly assault to small companies," Cox said.
"You can assume that we will go all-out to prevent this from
happening."
House
Democrats on Tuesday unveiled a White House-backed health
care proposal that is expected to cost more than $1
trillion. More than $500 billion in tax increases on wealthy
Americans and changes to entitlement programs are expected
to foot the bill for the proposed overhaul of the nation's
health care system.
Shortly
after NAM sent out its letter, the small-business lobby
group National Federation of Independent Business released
its own letter voicing opposition to the Democratic
proposal.
NFIB
opposes the bill, it said, because "it threatens the
viability of our nation's job creators, fails to increase
access and choice to all small businesses, destroys choice
and competition for private insurance and fails to address
the core challenge facing small business - cost."
NFIB
said it is opposed to employer-mandated coverage and the
public plan option, among other concerns. NFIB's letter,
signed by Senior Vice President Susan Eckerly, asked
Congress to find health care "solutions tailored to the
needs of the small business community."
NAM is
critical of the proposed revenue hikes in the House bill,
which the association claims "would threaten small business
investment, growth, job retention and creation, employee
benefits" and funding for research and development.
"Nearly
70 percent of manufacturers pay taxes at the individual
rate," Timmons wrote. "Many of these businesses fall into
the higher tax bracket, even though most of their taxed
income - an average of $570,000 for small and medium sized
manufacturers - is being reinvested into the business."
The
U.S. Chamber of Commerce also had harsh words for the
expected $500 billion in proposed tax increases.
In a
letter to House Ways and Means Chairman Charlie Rangel (D-N.Y.)
on Wednesday afternoon, chamber Executive Vice President R.
Bruce Josten wrote that "this bill would greatly increase
taxes on American businesses and families, do little to
address the rising costs of health care, and restrict choice
or force Americans to lose the health care coverage they
have."
"This
bill fails the Chamber's simple litmus test for health
reform legislation: in its current form this bill does not
improve the current situation; it will largely make things
worse," Josten wrote.
In its
letter, the National Association of Wholesaler-Distributors
took issue with provisions in the massive bill that it
claims will require employers to underwrite their employees'
insurance premiums or pay a penalty.
"This
does nothing to address the central problem of cost
employers now face in providing health benefits to their
employees, will do nothing to relieve employers of the
staggering premium increases with which they have been
burdened in recent years and will increase that burden for
some," NAW Vice President James Anderson wrote.
