Business groups split over healthcare repeal legislation

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.