Monday, May 24, 2010

Don't we all support small businesses?

A study done by the National Center for Policy Analysis has the current health care law negatively impacting the incentives for small businesses to hire more workers. This is likely due to the provision which provides a 50% tax credit for businesses with less than 10 employees, who make an average of $25,000 a year. The tax credit is reduced as more employees are hired. This naturally gives an incentive to keep businesses small. Why is this a bad thing? Local businesses do wonders for both working conditions and community development. Small businesses are run by locals, who keep most of the earnings in the community. This stimulates the local economy and keeps the wages of the management from skyrocketing out of proportion. In terms of the health care law, small businesses are the ones who need the most assistance with providing health coverage, and do wonders for the local community.

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