As lawmakers in Washington debate the future of enhanced premium tax credits, they must not overlook their critical support for the backbone of America’s Main Street.
These tax credits have always been a lifeline for millions of small businesses and their employees, helping them access high-quality, affordable health care coverage. This means entrepreneurs can focus on what’s important: building their businesses, creating jobs, and driving America’s economy.
With the tax credits set to expire at the end of the year, Congress faces a choice: act swiftly to preserve health care and economic opportunity for hardworking Americans by extending the tax credits, or risk pulling the rug out from under the very people who make economic opportunity possible.
As president and CEO of the Florida State Hispanic Chamber of Commerce, I’ve been sounding the alarm on this issue back home in Florida and in Washington on behalf of more than 600,000 businesses in the Sunshine State that rely on these tax credits.
Florida has the highest marketplace enrollment in the nation, and our state is set to be significantly hurt if Congress decides not to extend the tax credits. But this is an issue that threatens Americans across the country. Nationwide, more than four million small business owners and self-employed workers get their health coverage through the individual marketplace and the majority of them rely on the tax credits to pay for their monthly premiums.
If Congress fails to extend the tax credit, these entrepreneurs will see an average increase of 75 percent in their monthly premiums. Many could see premium costs double. This is money these folks just don’t have.
This is an urgent issue that needs lawmakers’ attention now. Renewal notices are set to land in mailboxes in just a few weeks, and open enrollment begins on November 1. Many Americans are starting to receive letters informing them that they will need to find hundreds or thousands of dollars more in their already-stretched budgets in order to maintain coverage. If Congress delays action until later this year, it will already be too late – Americans will have already had to suffer through sticker shock.
What follows sticker shock? Small businesses will be forced to determine whether to cut employees, reduce hours or services, shut their doors, or opt to go without health insurance entirely.
The impact of these choices will have widespread effects on the broader economy. Recent analysis indicates that if Congress allows the enhanced premium tax credits to expire, the United States is projected to lose more than 286,000 jobs. Total GDP is expected to decline by $34 billion, with total economic output estimated to shrink by $57 billion. This is a major economic hit that no American can afford.
Extending the tax credits is a commonsense policy solution to keep prices stable for hardworking Americans who are playing by the rules. Thankfully, Republicans have already safeguarded this approach in the One Big Beautiful Bill Act by closing potential loopholes and implementing stricter verification requirements to ensure that the tax credits are only available to eligible Americans.
Extending the tax credits is also good politics that resonates with voters across the political spectrum. Polling has shown an overwhelming 83 percent of Americans – including 78 percent of Trump supporters – are in favor of extending the tax credits.
Lawmakers have already missed two opportunities to extend these tax credits this year. And each new day of inaction brings our nation closer to rate hikes, coverage losses, and economic harm that will ripple across every community.
The tax credits are essential to the stability of our economy and to protecting the health and financial security of millions of small businesses. Our lawmakers have a final opportunity to do right by American entrepreneurs and extend the enhanced premium tax credits.
Small businesses are the backbone of America’s economy. On their behalf, I urge Congress to act now.
The survival of America’s backbone depends on it.
Julio Fuentes is the president and CEO of the Florida State Hispanic Chamber of Commerce.
