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FACT CHECK: Health care small biz tax cut elusive

WASHINGTON – Zach Hoffman was confident his small business would qualify for a new tax cut in President Barack Obama's health care overhaul law.

But when he ran the numbers, Hoffman discovered that his office furniture company wouldn't get any assistance with the $79,200 it pays annually in premiums for its 24 employees. "It leaves you with this feeling of a bait-and-switch," he said.

When the administration unveiled the small business tax credit earlier this week, officials touted its "broad eligibility" for companies with fewer than 25 workers and average annual wages under $50,000 that provide health coverage. Hoffman's workers earn an average of $35,000 a year, which makes it all the more difficult to understand why his company didn't qualify.

Lost in the fine print: The credit drops off sharply once a company gets above 10 workers and $25,000 average annual wages.

Another surprise in the HCR bill?

 
Anonymous

Asked by Anonymous at 10:24 AM on May. 20, 2010 in Politics & Current Events

This question is closed.
Answers (6)
  • I just found out about this yesterday. We have bought 2 additional businesses and I was really hoping to add healthcare to all of them. Apparently, I overpay. What is up with that? First they penalize people that have worked themselves to real success with higher taxes..now they penalize those that work hard, earn a decent salary and stay off PA. Today I am going to ask everyone if they would rather have an additional .50 hr raise and no healthcare added or a $3.00 an hour pay cut and NEVER any overtime and I just might be able to swing healthcare. I am willing to "bet the farm" they will take the raise.

    All this will do is increase the class considered the "working poor."
    yourspecialkid

    Answer by yourspecialkid at 10:59 AM on May. 20, 2010

  • Anonymous

    Answer by Anonymous at 10:26 AM on May. 20, 2010

  • Yeah, sucks huh? People will never learn. There is always a catch somewhere when the government is involved. Many people tried to warn of things like this, Oh well.......
    itsmesteph11

    Answer by itsmesteph11 at 10:33 AM on May. 20, 2010

  • Just finished reading the article. Apparently you get money from the government if you pay your employees dirt and keep them overworked. Provide a decent wage, and you are screwed.

    Odd how that works. Seems like it encourages employers to keep their wages at minimum wage and hold off on raises. Also discourages expansion and the hiring of new employees.
    mancosmomma

    Answer by mancosmomma at 10:38 AM on May. 20, 2010

  • Yeah. The whole HCR is a joke. I am a small business that has 2 employees with medical insurance. We just got a notice that our rates are going up 18% ($to $686 a month), the coverage on the policy is going down by 14%, And IF we get a tax break, it "could" be up to $2000 a year. The way I see it , I am paying more all year for less. Thanks Obama. We were fine before you got involved!
    Anonymous

    Answer by Anonymous at 10:44 AM on May. 20, 2010

  • Special, when all those working poor end up on the expanded Medicaid, we will discover HCR hasn't funded enough for it. Then either the cost will go up or there will be lots of eligible people who won't have coverage because of lack of funding.

    It's not looking pretty.
    mancosmomma

    Answer by mancosmomma at 11:04 AM on May. 20, 2010