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Firms Don’t Want $2K Obama-Care Tax Credit

From a perplexed Associated Press:

Obama’s health care aid to small firms disappoints

By RICARDO ALONSO-ZALDIVAR
May 30, 2012

WASHINGTON – Many small businesses struggle to afford health insurance for their workers, but a a [sic] new tax credit meant to help them seems to be turning into a disappointment.

Although opinion polls show the credit is one of the most popular ideas in President Barack Obama’s health care law, only 170,300 businesses out of a pool of as many as 4 million potentially eligible claimed it in 2010, about 4 percent.

That seems to be a pattern with these supposedly popular aspects of Obama-Care. Nobody wants to be in Obama-Care’s highly touted ‘high risk pools,’ either.

A recent government report found the tax credit time-consuming to apply for and not rewarding enough to be financially attractive.

This is also a typical pattern. The measly payoff is not worth all the effort and expense it requires.

That’s put the Obama administration in the awkward position of asking Congress to help fix the problems by allowing more businesses to qualify and making it simpler to apply

Small businesses represent the crumbling edge of the nation’s system of employer-based health care. Only about 30 percent of companies with fewer than 10 workers offer health coverage, and they often pay more for insurance than large businesses. The credit, which once had support from lawmakers of both parties, was supposed to help businesses already providing coverage afford the premiums. Maybe it would even entice some to start…

Oh, our sides.

The administration says word is finally getting out, and it expects the number of companies claiming the credit for 2011 to more than double, reaching 360,000 businesses.

That it what they always say.

A recent report by Congress’ nonpartisan Government Accountability Office identified several problems with the program. To begin with, the GAO said, the tax credit is structured so its biggest benefits go to very small companies paying low wages. About 4 out of 5 such businesses don’t offer coverage, and the tax credit is not sufficient to encourage them to start doing so.

"Small employers do not likely view the credit as a big enough incentive to begin offering health insurance," the report said.

It isn’t until the 14th paragraph of this article that we finally hear:

The average credit claimed in 2010 was about $2,700, although some companies qualified for much more

Hilarious. These "struggling" small firms are supposed to jump through endless hoops in order to get a $2,700 tax credit? And they think this will entice more small businesses to offer healthcare insurance for their employees?

How out of touch can you be? Apparently, Mr. Obama doesn’t have the slightest idea how much healthcare coverage costs an employer. But how would he know?

He’s never been an employer.

This article was posted by Steve on Thursday, May 31st, 2012. Comments are currently closed.

2 Responses to “Firms Don’t Want $2K Obama-Care Tax Credit”

  1. yadayada says:

    he’s actually never been an employee either

  2. P. Aaron says:

    Once one finds out who Obama is, he’s not nearly as attractive as the hype. Just like this bill.


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