Letter supporting S. 3501, the "American Job Protection Act of 2010"

The Honorable Orrin G. Hatch
United States Senate
Washington, DC 20510

Dear Senator Hatch:

The U.S. Chamber of Commerce, the world’s largest business federation representing the interests of more than three million businesses and organizations of every size, sector, and region, thanks you for introducing S. 3501, the “American Job Protection Act of 2010,” which would repeal the job-killing employer mandate included in the Patient Protection and Affordable Care Act (PPACA). The Chamber strongly supports this legislation and urges all members of the Senate to cosponsor it.

This legislation would not only protect existing jobs, but spur the creation of more jobs by removing the paralyzing fear of many small businesses regarding the approaching coverage requirements that begin in 2014. Businesses with fewer than 50 full-time equivalent employees are hesitant to grow their businesses or hire what would amount to the 50th employee; under current law, the impending employer mandate would subject them to dangerous new requirements and penalties.

Businesses voluntarily offer health insurance to most Americans. The PPACA “free rider” mandate that requires businesses to provide coverage is an unprecedented intrusion on employers’ freedom to develop employee compensation packages. Businesses and employers are not one-size-fits-all and the mandate treats them as such.

The requirement would also disproportionately disadvantage low-income workers, who are more likely to trigger the affordability provision to subject a business to unpredictable and significant penalty. It is critical that this provision be removed before it comes into effect in 2014.

The Chamber appreciates your continuing efforts to protect American jobs and looks forward to working with you to enact this legislation, as well as other much-needed changes to the PPACA.

Sincerely,
R. Bruce Josten