Business groups split over healthcare repeal legislation

Small business lobbies split along ideological lines Monday as Sen. Jon Kyl (R-Ariz.) introduced legislation that would repeal several provisions of Democrats' healthcare reform law.

The powerful National Federation of Independent Business stood by Kyl as he unveiled his bill to repeal the law's employer mandate and its tax on healthcare plans. The show of support comes as the NFIB, the Chamber of Commerce and several other groups launched a campaign to repeal an $87 billion tax on insurance plans starting next year.

"The policies in the health care law will crush small businesses with new costs and uncertainty," said NFIB President and CEO Dan Danner. "This bill addresses the top concerns of small businesses, and it will help them get back to creating jobs and investing in their businesses."

The much smaller, left-leaning Main Street Alliance issued a statement blasting the business groups' support for repealing the health insurance tax, a top priority for the insurance lobby.

"This looks like another case of small business identity theft – hiding behind small business arguments to defend big insurance profits, just like when health insurers secretly funneled $86 million to the U.S. Chamber in 2009 to fund attacks on health reform in the name of the business community," said Main Street Alliance executive committee member David Borris. "We'd like to know, are the insurance companies bankrolling this latest campaign, too?"

Kyl's bill would also repeal restrictions on high-deductible health insurance plans and flexible spending accounts. Sens. John Barrasso (R-Wyo.), Richard Burr (R-N.C.) and Tom Coburn (R-Okla.) are co-sponsors.

Correction: The bill does not allow self-employed Americans to deduct healthcare costs, as stated earlier.