HC Bill Could Reduce Business Growth

[Gremlin-USA]

To offset the expense Obamacare put on small business there are offset credits, BUT

For employers with 15 workers, taking on an additional hire will reduce the credit by $1,400. For a company looking to expand from 20 to 21 workers, the credit will shrink by $3,733. And businesses will take a $5,600 reduction on the credit when hiring the 25th worker.

The credit phases out for companies with at least 26 employees.

This really makes life easier for small businesses that want to grow.

Full Story - Report: Healthcare law tax credits encourage small businesses to stay small, not hire - The Hill's On The Money

 

[industry7]

I've been getting the feeling that an unspoken aim of the health care bill is to encourage all business to stop providing health insurance as a benefit.

And it would be a good thing. The fact that people don't buy their own policies is one of the greatest road blocks preventing free market forces from keeping HC costs in check. People don't pay for health care, it's covered by insurance. But people don't pay for insurance either, it comes with the job. What do you think it going to happen? There is no other option but for costs to spiral out of control.

Once all businesses stop providing health insurance, market forces would dictate that those businesses would begin to increase base salary/wages up to the amount they were previously spending on health insurance. If the health care bill had better provisions for tax exemptions, then the end result would be no initial increase in HC costs. The long term result would be free market forces pushing HC costs down, as individuals shop around for the best rates and cheap service.