Lewis Opening Statement: Hearing on Small Business Health Care Tax Credit

Subcommittee on Oversight
Hearing on Small Business Health Care Tax Credit

"I thank the Chairman for holding this hearing on the small business health care tax credit. In these tough economic times, many Americans fear they are just one medical emergency away from losing their home, their business, or their savings. This tax credit is designed as a temporary measure to help small employers afford health insurance for their employees. It is a bridge to broader reforms that will help small businesses purchase affordable, high-quality health insurance in 2014.

"To date, more than 300,000 small businesses have claimed and benefited from over $400 million in tax credits to help them provide health insurance to employees. Still, some question whether the credit is meaningful.

"It would be a mistake to draw conclusions from the early claim numbers currently available. Many small businesses request extensions and file their tax returns in September and October. Returns received in October are still being processed and the agency does not expect to finish processing these returns until December 2011. It is simply too early to tell how many businesses will claim the credit.

"Finally, we must also remember that any serious discussion of the administration of tax credits must begin with fully funding the IRS. Today's hearing provides a real-time example of how the $600 million in budget cuts proposed by House Republicans may affect small businesses and employees. The Inspector General's report states that the agency needs about $24 million to administer this credit next year.

"I thank the witnesses for being here today and look forward to hearing from each of you. As we have successfully done in the past, I would like to work with the Inspector General to provide the agency with any additional authority it needs to administer this tax credit.

"Thank you."

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