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Obama’s “small business” tax cuts aren’t all they’re cracked up to be

IR 20 May 2010 2 Comments
[This article was syndicated via RSS from Illinois Review. The views represented do not necessarily represent those of the Chicago Daily Observer.]

A Los Angeles Times story features Springfield IL small business owner Zach Hoffman, who's finding out he'll get little help from ObamaCare's promised tax cuts.

Zach Hoffman was confident his small business would qualify for a new tax cut in President Barack Obama's health care overhaul law.

But when he ran the numbers, Hoffman discovered that his office furniture company wouldn't get any assistance with the $79,200 it pays annually in premiums for its 24 employees. "It leaves you with this feeling of a bait-and-switch," he said.

When the administration unveiled the small business tax credit earlier this week, officials touted its "broad eligibility" for companies with fewer than 25 workers and average annual wages under $50,000 that provide health coverage. Hoffman's workers earn an average of $35,000 a year, which makes it all the more difficult to understand why his company didn't qualify.

Lost in the fine print: The credit drops off sharply once a company gets above 10 workers and $25,000 average annual wages.

The rest is HERE.

2 Comments »

  • Issa said:

    Nice insights. I think many small business owners, specially start ups, will have a tough time keeping up with all these new policies set in place. I wonder if the prices are meant to hoodwink people out of their good ol’ money. Besides, the national debt crisis is calling for drastic measures to keep the economy up and running.

  • Income Tax Calculator said:

    Yet another reason why obama is not going to make this country better with his poorly planned changes Income Tax Calculator

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