NFIB: ObamaCare is Bad for Small Business

On the health insurance tax credit for small employers: It’s “only available for a maximum of six years” and “fewer than one-third of small businesses even pass the first three (of four) tests to qualify: have 25 employees or less, provide health insurance, and pay 50% of the cost of that insurance.”

On the new health insurance tax: “This tax will be paid almost exclusively by small businesses and individuals because the law specifically excludes self-insured plans, the plans that most big businesses and labor unions offer, from having to pay the tax.” Also, “the amount of taxes passed on to the typical family of four could be $500 or more per year.”

On the requirement that all businesses issue IRS 1099 forms to document every business-to-business transaction of $600 or more: “Congress hopes to raise $17 billion in added tax revenues and fees from this new mandate.”

Full Wall Street Journal op-ed by NFIB CEO Dan Danner here.

Comments (4)

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  1. Tom H. says:

    Am I supposed to be surprised at this? Of course it’s going to be bad for small business.

  2. Larry C. says:

    Sad to say but the NFIB was in there selling out until the last minute. Wish they had come to their senses much earlier.

  3. Devon Herrick says:

    The only firms that will get the full credit (50% in 2014; 35% prior to 2014) are those that are very small with low wages — 10 or fewer employees with average wage of $25,000 or less. The credit is designed to encourage small employers to provide health coverage but has rather weak incentives. I don’t believe the credit will induce any employer who otherwise would not offer coverage to begin providing employee health insurance. In other words, it is a waste of taxpayer funds since the only firms who will take advantage of the credit are those that were already offering coverage.

  4. Vicki says:

    I agree with Larry. Nice to have the NFIB back in the fight — on the right side this time.