WASHINGTON, April 5, 2011-The International Franchise Association (IFA) applauded the Senate vote repealing the onerous 1099 tax reporting provision in the health care law as a major victory for franchise businesses, due to the excessive cost burden and uncertainty the provision placed on the more than 825,000 franchise establishments representing nearly 18 million workers in the United States.”We applaud Congress for taking a positive first step toward removing the excessive cost burdens and uncertainties imposed on franchise small businesses as a result of the healthcare law,” said IFA President & CEO Steve Caldeira. “We hope lawmakers will continue to push for pro-growth policies that enable our members to grow their businesses and create local jobs.”
IFA’s number one priority for health care reform legislation is to ensure that health insurance is more affordable for franchised businesses and their employees. For a decade, the IFA has supported legislation that would enable small employers to band together through national associations or franchise systems to purchase health insurance. IFA also supports proposals that strengthen consumer-oriented, affordable health insurance options. Finally, the franchised business community has long sought solutions to medical malpractice laws to curb the impact of litigation on health insurance premiums and the cost of medical care.
PPACA (Patient Protection and Affordable Care Act) contains a framework that will encourage further shifting of health care costs onto the backs of small franchised businesses-in the form of a mandate on employers-and impose new taxes and fees that will be passed along by health insurance providers to consumers. IFA has serious concerns that this law will cost well over $1 trillion in the next ten years. Much of the revenue necessary for this new federal spending will come from small franchised businesses through a series of taxes and penalties.
“The framework of the current law threatens the economic viability of franchised businesses still struggling to recover from the economic downturn by imposing excessive cost burdens onto the backs of small businesses which prevent them from growing and creating new jobs,” said Caldeira. “While we do not believe that PPACA achieves meaningful, long-term control of U.S. health care costs, the IFA is committed to reducing the cost of health insurance for small businesses and their employees, and we strongly encourage Senators to develop new solutions that provide meaningful cost‐controls and consumer‐driven solutions.”
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 nearly 18 million jobs and $2.1 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. For further information, visit www.franchise.org.