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February 18, 2013

‘Fair Share’ Is Not, For Small Businesses

Moore

During the recent recession, many businesses throughout the commonwealth have had to struggle to ensure that their doors remained open. One of my first tasks in 2009 as state senator and as Senate chairman of the Committee on Community Development and Small Business was to embark on a listening tour to learn about the concerns of our local businesses and how to improve the economic climate in the commonwealth. As I traveled throughout the state and spoke to local business owners, one issue continued to come up: the Fair Share Contribution program under the state's 2006 health care reform legislation. It was adding undue burden to some businesses. Understanding the important role of small businesses in our local communities, the elimination of the Fair Share Contribution program became one of my top legislative priorities.

The program mandates that employers with 11 or more full-time equivalent (FTE) employees make a “fair and reasonable” contribution toward their employees' health care costs, or pay a $295 per assessment for each full-time employee. However, the federal Affordable Care Act has a similar provision, effective in 2014, for employers with more than 50 employees, which could result in a potential double-penalty for Massachusetts businesses.

Since first learning of the hardships this program had created, I have continued to speak out about its flaws. As Senate chairman of the committee, I held an oversight hearing, offered amendments to the budget and sponsored legislation to repeal the program. It was critical to raise awareness among my colleagues and the administration as many were unaware of the negative impact this program was having on business. Over the past four years I have worked with the administration to find ways to make the program more equitable and make it easier for businesses to comply. We need to limit burdens and ensure job growth in the commonwealth. These efforts have resulted in the Patrick Administration filing legislation to eliminate the Fair Share program.

The Fair Share program has not affected large, multinational corporations, but rather, small businesses throughout the state. These businesses are a valuable resource for every city and town in the commonwealth. They generate jobs, energize neighborhoods and actively participate and give back to the communities in which they do business. Eliminating this program will help relieve an unnecessary burden on our small businesses, allow for continued job growth and economic recovery and help our communities to rebuild.

I applaud Governor Patrick for his leadership in filing legislation to give small businesses throughout the commonwealth the fair share they deserve. The elimination of the Fair Share Contribution program will further demonstrate the state's commitment to ensuring the success of small businesses.

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Michael O. Moore, a Democrat from Millbury, represents the Second Worcester District in the Massachusetts Senate.

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