For immediate release
Contact: Alisa Harrison, 202-628-8000
aharrison@franchise.org
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WASHINGTON, March 9, 2010—As Congress continues efforts to pass comprehensive health care reform, the International Franchise Association once again urges Congress to put aside the divisive debate over a comprehensive approach and focus on policies that make coverage more affordable and accessible to all Americans, particularly franchised small businesses.

“The IFA continues to urge Congress to start fresh on health care legislation,” said IFA Vice President of Government Relations David French.  “Even in ideal economic times imposing costly regulations and taxes on business is a bad idea.  Congress should pursue ways to streamline and modernize health insurance regulation rather than adding new costs to job creation.”

French explained there are several provisions in the Senate bill that impacts small businesses, including an increase in the Medicare payroll tax by $54 billion over 10 years.  This increase will likely hit approximately one-third of small business owners across the country, which employ 30 million Americans.  Since the provision is not indexed for inflation, the number of small businesses (filers) who will pay the tax will increase 53 percent over the first seven years it is in effect.

“Payroll taxes are an especially burdensome tax because they tax the cost of labor,” French said.   “Regardless of whether a small business makes a profit or not, it is forced to pay this tax.”

French said that Congress should move forward on sensible policies that provide regulatory certainty to small business owners to assure sustainable economic recovery and job creation.

In an action alert to members, IFA said the legislation that will be considered by the House of Representatives still contains an unacceptable mandate on employers to provide health insurance.  Instead of mandates, IFA is urging Congress to work on legislation that will adopt the following consensus reforms:

• Tax credits for small businesses and the self-employed to help them afford the full cost of health insurance plans,
• National or regional exchanges where small businesses can pool together to purchase insurance plans and achieve the benefit choice and competition,
• Consumer-driven options such as health savings accounts and flexible spending accounts, and
• Real medical liability reform to end the out of control costs associated with unnecessary defensive medicine.  

French said that IFA has a long history of advocating for changes that allow employers to provide health care benefits to their employees and restrain ever increasing health insurance costs. 

“We agree with President Obama that successful health care reform must reduce the long-term growth of health care costs for businesses,” French said.  “However, we strongly disagree that the proposals that Congress is considering right now are the best approach to meet the goal.”

About the International Franchise Association
The International Franchise Association is the world’s oldest and largest organization representing franchising worldwide. Celebrating 50 years of excellence, education and advocacy, IFA protects, enhances and promotes franchising through government relations, public relations and educational programs.  Through its awareness campaign highlighting the theme, Franchising: Building Local Businesses, One Opportunity at a Time, IFA promotes the 21 million jobs and $2.3 trillion of economic activity generated by franchising. IFA members include franchise companies in over 90 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.

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