An op-ed in yesterday’s Wall Street Journal lays out one of the best cases I’ve seen about why small businesses are concerned – and rightfully so – about higher taxes. Most folks aren’t aware of the excessive burden that small manufacturers already face – payroll taxes, unemployment insurance taxes, federal and state income taxes. Now they’re facing a myriad of increased costs related to the health care bill such as onerous new reporting requirements and higher health care premiums. Add on to that the expiring rates from 2001 and 2003 and the numbers get downright scary. That’s why businesses aren’t hiring – and it’s why Congress needs to wake up and take action to keep rates low.

The op-ed is “Why I’m Not Hiring” by Michael P. Fleischer, sub-headlined, “When you add it all up, it costs $74,000 to put $44,000 in Sally’s pocket and to give her $12,000 in benefits.”

We are disappointed with the President’s approach to health-care reform he laid out today, both on process and substance. While the President included a few ideas intended to reduce costs (allowing medical providers to participate in fraud/abuse investigations) and to improve access (allowing health care plans with health savings accounts to be included in health exchanges), the proposal builds on a flawed foundation that increases costs for manufacturers. It does not address our key concern — long-term health care cost savings.

Further, the President’s comment on an “up and down” vote indicates that health care reform will not be completed in a bipartisan fashion — an approach the NAM has endorsed and recommended since the beginning of this effort. Manufacturers want health-care reform that includes the best ideas from both Democrats and Republicans. We believe health-care reform should protect what currently works in the health system, focus on long-term and sustainable reduction in health-care costs, and achieve more affordable health options.

Jeri Kubicki is NAM’s vice president for human resources policy.