Small Businesses Won’t Find a Friend in Obamacare

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“A recent study by FamiliesUSA shows that only one in four businesses employing 25 or fewer employees will get the full credit—and one in six will receive absolutely nothing.  Moreover, the credit is reduced whenever a firm adds workers or raises wages—so it actually provides as a perverse incentive not to hire or give raises.

The bottom line, according to Dr. Bob Graboyes, senior healthcare advisor for the National Federation of Independent Businesses:  the credit will do little to help small business.
Other provisions will actually harm small firms.  The employer mandate requires non-insuring firms with 50 or more workers to pay a $2,000 penalty per employee.  New insurance requirements will make it more difficult for employers to offer attractive, affordable insurance options.  And the new requirement to file a 1099 form for every vendor paid more than $600 in a year will sink small-business owners even deeper into the morass of nonproductive paperwork.

In short, Obamacare will be make life far more difficult for small firms and their employees.  At a recent NFIB event, entrepreneurs started talking about how Obamacare will affect their day-to-day operations.”

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