7September 2009
Health care reform threatens small business owners with a pay or play option. Small business owners either provide health insurance for their employees or pay an 8% penalty under the current proposal floating through Congress.
Many business owners provide health care for their employees, but could not afford the government mandate. Some small business owners say they will have to lay off some employees in order to comply if the current proposal becomes law. Other indicate they would have to eliminate pay increases and bonuses, including the Christmas bonuses that many owners provide. The National Federation of Independent Business Owners says they are concerned about the amount of job losses this plan would cause. How would creating more layoffs help the economy?
Politicians seem to forget that small business owners employee a very large part of the work force. In addition, small businesses can help lead the country out of recession if they are allowed to grow. Health Care Reform would have the opposite affect by causing layoffs. Politicians don’t seem to be concerned about the impact. In fact, Rep. Charlie Rangel, D-NY., who chairs the Ways and Means committee wants to add a surtax on 2 million tax filers. It’s estimated that up to 60% of those are small business owners.
If you are a small business owner, and would like more information on this subject, send me an e mail.