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Small Businesses Can Get Tax Credit

GoodWitch58Beach Fanatic
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New health insurance credit for S.C. companies | McClatchy
As many as 58,000 small businesses in South Carolina may qualify for a new federal tax credit for providing health insurance to their employees, the Treasury Department said Friday.

The Internal Revenue Service is sending postcards to the companies, urging them to take advantage of the credit created in the landmark health care bill that President Barack Obama signed into law in March.


Read more: http://www.mcclatchydc.com/2010/12/03/104713/new-health-insurance-credit-for.html#ixzz17FQacjQa

This seems like a good opportunity, a win-win for S.C. small business owners and their employees...so why are their political leaders fighting against it?
Sens. Lindsey Graham and Jim DeMint voted against the measure, saying the costs of fulfilling its federal mandates requiring companies to provide health insurance would badly damage South Carolina's economy.

Read more: http://www.mcclatchydc.com/2010/12/03/104713/new-health-insurance-credit-for.html#ixzz17FQyvnhs

Edited

Replies

2
30ashopper avatar
30ashopperSoWal Insider
#2
I think this a pretty good incentive in general. The phase out was poorly designed though, very few employers can / will take advantage of it.

Small Businesses Skip the Health-Care Tax Credit - BusinessWeek

The 50K gross wage limit and phase out schedule is way too low, and the FTE numbers need to be increased for this to be effective.

Long term this becomes even more anemic since it'll be far cheaper to just tell your employees to go into the federal and state subsidized exchange programs.

Edited

Matt J avatar
Matt JSWGB
#3
I think this a pretty good incentive in general. The phase out was poorly designed though, very few employers can / will take advantage of it.

Small Businesses Skip the Health-Care Tax Credit - BusinessWeek

The 50K gross wage limit and phase out schedule is way too low, and the FTE numbers need to be increased for this to be effective.

Long term this becomes even more anemic since it'll be far cheaper to just tell your employees to go into the federal and state subsidized exchange programs.

So it's simply another part of this bill that needs to be fixed rather than just repealing the entire thing.

Thank you.

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