At a time when the economy really could use small businesses hiring more workers, the Democrats passed a health care law that will encourage small businesses to stay small.
The Hill: A study by the National Center for Policy Analysis shows that tax credits in the new healthcare law could negatively impact small-business hiring decisions.
The new law provides a 50 percent tax credit to companies offering health coverage that have fewer than 10 workers who, on average, earn $25,000 a year. The tax credit is reduced as more employees are added to the payroll. I suppose they’ll just call it an unintended consequence.
The NCPA study finds the reduction in tax relief to be a cost concern for companies looking to hire additional workers, but operate on slim profit margin yet still provide employee health coverage.
“You wouldn’t think this would have an impact, but at the margins, when they [business owners] decide to hire an extra worker, they’re not only going to be paying that worker’s salary, they’re going to have to absorb the cost of losing the tax credit,” Pamela Villarreal, NCPA Senior Policy Analyst and co-author of the report, told The Hill.
Great! Less jobs means less people paying taxes to cover the massive spending of the Democrats. Businesses remaining small will have the same effect.
Memeorandum started a thread.