Only 12 percent of small businesses would benefit from the ObamaCare tax credit
The Administration’s claim of a small business tax credit under ObamaCare was fraudulent. What the president failed to tell everyone was pretty important information. The credit drops off sharply once a company gets above 10 workers and $25,000 average annual wages.
Zach Hoffman, a furniture owner in Illinois, pays about $80,000 a year to insure his 24 employees. He thought his company would qualify for ObamaCare’s small business tax credit. After doing the math, he discovered his company won’t qualify for the tax credit, and he would have to eliminate 14 jobs and cuts salaries to get the most from the credit.
ObamaCare includes a tax credit of up to 35 percent of insurance premiums for small employers if they offer health insurance in 2010. It is temporary and available to businesses with 25 or fewer employees and an average annual wage base of $50,000 or less, but the value of the credit drops considerably after 10 employees. Even the Congressional Budget Office estimates only 12 percent of employees who get health insurance from a small employer work for businesses that would benefit from the credit.
Business groups, such as National Retail Federation, Small Business & Entrepreneurship Council, and National Federation of Independent Business, have already panned it because it is too restrictive, too limited, and too complex and won’t help small business owners create jobs.
For previous ObamaCare Flatlines, go to http://www.gop.gov/obamacare.