From now until Election Day all you are going to hear from some political candidates is how the new health care law is bad for small businesses.
Of course this isn’t true but without something more tangible than common sense to counter the misinformation, confusion reigns.
So here is the good news. A study appearing in the New England Journal of Medicine concludes that the new health care law will be good for small businesses and their employees.
The study conducted by the highly respected Rand Corporation using their sophisticated computer modeling predicts that small businesses will pay less for health insurance under the new law when fully implemented. The reduction will be due to the health insurance exchanges that create large pools of employees and individuals buying insurance thus driving down premiums and create other advantages for small business such as lower administration costs.
Unfortunately the authors of the study—Christine Eibner, Peter S. Hussey, and Federico Girosi—do not take into consideration the immediate reduction in health insurance costs for small businesses due to the tax credits now available for those with less than 25 employees.
However, the tangible scientific evidence now belongs to those of us who supported the new health care law. But unfortunately, the political naysayers don’t believe in science. So the misinformation machine will just keep rolling.
Tuesday, September 7, 2010
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Quit shilling for Obama... he is terrible for small business...
ReplyDeleteSmall businesses feel squeezed by Obama policies
http://www.washingtonpost.com/wp-dyn/content/article/2010/09/03/AR2010090305391.html
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Some business owners and advocates complain that some of the programs contradict one another. Stephanie Cathcart, spokeswoman for the National Federation of Independent Business, said benefits from the payroll tax exemption business owners use when they hire unemployed people are mitigated by provisions in the health-care overhaul law that reduce a tax credit when businesses hire.
"It's counterintuitive," she said. "Frankly, a lot of these initiatives fall short."
Brogan of the National Small Business Administration said a new accounting regulation dramatically increases the requirements associated with providing documentation to the government on businesses' vendors, a rule that on average will multiply the average number of 1099 tax forms an owner files every year to 86 from 10.
"This will take the money they'd spend to hire a part- or full-time employee and give it to accountants," she said.
Dinesh Sharma, president of government contracting firm Washington Business Group in Chantilly, said he ruled out using the payroll tax exemption, believing the savings couldn't justify the tens of thousands of dollars he'd spend in salary and health insurance for a new employee.
"We're not large enough to hire someone just to take the benefit of a small tax break," he added. "The burden is more than the benefit."
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Although it isn't obvious, the part about requiring more 1099 tax forms is about ObamaCare... and it is terrible for small businesses.