For immediate release
Contact:
Alisa Harrison, 202-628-8000
Matthew Haller, 202-662-0770
aharrison@franchise.org
mhaller@franchise.org
twitter.com/franchising411
WASHINGTON, June 17-The International Franchise Association called on the Internal Revenue Service (IRS) to ensure that employer-sponsored coverage – the backbone of the U.S. health care system – remains a competitive option for all employees, as it implements the Patient Protection and Affordable Care Act (PPACA).
“We greatly appreciate the willingness of the IRS and the Obama administration to carefully evaluate the impact of the health care law’s employer mandate provision will have on the ability of franchise small businesses to continue to be the job-creating engine they have been historically,” said IFA President & CEO Steve Caldeira. “Taking into account the impact of the health care law on job creation is
especially important as the country works to avoid slipping back into a recession.”
The franchise industry is a leading job creator in the United States outperforming other business sectors. From 2001 to 2005, the direct economic output of franchise businesses expanded by more than 40 percent versus only 26 percent for other businesses. In those years, the franchising industry created jobs at more than three times the rate of other non-franchised business segments. All told, today more than 825,000 franchise small businesses create nearly 18 million jobs across 300 different sectors and yield $2.1 trillion in direct and indirect economic output.
IFA submitted its comments
as part of the Employers for Flexibility in Health Coverage (EFHC), a coalition of leading trade associations and businesses in the retail, restaurant, hospitality, construction, temporary staffing, and other service-related industries, as well as employer-sponsored plans insuring millions of American workers.
The letter includes guidelines about the provisions of PPACA that affect employers, particularly the definition of full-time, part-time, temporary and seasonal workers, which are particularly important to the franchise industry and the other industries represented in the coalition.
PPACA 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.
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While the current law imposes excessive cost burdens onto the backs of small businesses which prevent them from growing and creating new jobs,the IFA is committed to working with the Administration to reduce the cost of health insurance for small businesses and their employees, and to mitigate the potential impact on job creation the implementation of the law will have on franchise businesses,” said Caldeira.
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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.