Health care reform helping small businesses

Idiot... No, it means that you are paying LESS in taxes and the credit comes off of your computed TAXES, not as a reduction in AGI.

The idea of tax credits for small businesses is good in general. There are some things in the Health care bill that are good, no doubt.

The tax credit is somewhat limited though, depends on how "small" the small business is. As with all tax deals, it helps some, not all. You have to look at the details. But it is a start! I think the complaints from the business community are small businesses >50 employees with more mandates and instead of a credit, a $2000 penalty for not providing insurance. Depends on the definition of "small business" And then there is the pending flood of new 1099 forms that is going to hit all small businesses. There are alot of details in this topic that are overlooked.

Many small businesses don't qualify for the tax credit, which is available to employers that have fewer than 25 full-time positions and pay an average salary of less than $50,000 a year.

And only those with fewer than 10 employees and an average salary of less than $25,000 a year can claim the full 35% credit. Employers with more employees and higher salaries can get a smaller credit.

Nmysys wrote: Don't overlook this part of the article posted.

"We looked at the tax credit and said, 'This is perfect.'"

Tax credit means Assistance by the Government. Isn't that the trap? So it still comes down to a Government takeover and higher ultimate costs to those who pay taxes.

So you are advocating raising taxes on small businesses?

The title of this thread cracks me up. rofllol

Yeah, and the stats behind it crack me up! I can hardly wait for the GOP to start trying to tell the public all of the things they want to take away... And the businesses that will be getting the tax-credits, that they want to screw....

rofllol

LadyJazzer wrote: Yeah, and the stats behind it crack me up! I can hardly wait for the GOP to start trying to tell the public all of the things they want to take away... And the businesses that will be getting the tax-credits, that they want to screw....

rofllol

And real people would get real help from this bill, but the Republicans would take that away from them....now ain't that just the funniest thing you have heard all day? Lets stick it to small businesses and uninsured Americans.....that should completely crack people up.

http://www.foxnews.com/story/0,2933,589826,00.html

More facts to study, (if anyone is really interested in discussion). Yes its from FOX, deal with it!
Apparently this tax credit is temporary, as well as limited.

"...enable small businesses to pool their resources to buy insurance." This may be good if it actually works.

Here are other some effects of the health reform law as it pertains to small firms:

— States, by no later than 2014, must establish Small Business Health Options Programs (SHOPs), which will enable small businesses to pool their resources to buy insurance;

— Until the SHOPs are established, businesses with 10 or fewer full-time employees earning less than $25,000 on average will be eligible for a 35 percent tax credit; firms with up to 25 workers who average up to $50,000 will receive partial credits, while businesses with more than 25 workers will receive no credit;

— Those tax credits will remain steady at up to 50 percent of costs for the first two years any company buys insurance via state exchanges;

— Beginning in 2014, under the reconciliation plan, firms with more than 50 employees must offer health care to employees or pay penalties of up to $2,000 per employee for all but the first 30 workers.

Ashmus, who is chairman of the National Small Business Association (NSBA), which represents more than 150,000 small firms, said the law will force executives to make tough decisions regarding their employees' health benefits.

"There's going to be a lot of incentive to drop coverage, even with the penalty," Ashmus said. "And will we not be getting subsidies because of our size, and we are still in the small-group market because not all of our employees get coverage through us. That will impact us significantly."
....And tax credits for small businesses, which will be available for a maximum of five years, won't bridge that gap, because very few of those firms will actually qualify.

Your topic title contracts your first sentence. Easier to provide health insurance does not increase employment or create jobs. It means it is easier to provide health insurance to employees you have not FIRED due to increased costs and obligations. Are you an employer, I doubt it. It is always easbitchier to not provide insurance at all unless someone else pays for it. Before you bitch about me being a bad employer, I pay enough so that people can buy their own insurance and do their own homework and paper work. I just trade money for labor, I do not complicate it, I just pay more money.

Employment terms, pay, obligations and risks are between the employer and employee and no one else, the employee or the employer can always walk away, thus no regs are needed.

Jobs are not a right, even though your state may tell you otherwise. If they were a right, everyone woud have one and you all would make pennies on the dollar.

In my company, employees and clients that don't want to play fair, don't get to play and often the laws there to protect them screw them over or out of opportunity.

I just talked with friends who work at Safeway this morning about this. They said their premiums have gone up (over 20%) and so have their deductibles since the healthcare joke of a bill was passed. It is costing everyone more money including the companies, which have to pass it on to the employees.