RSS Feed Menu
A new report suggests that there are additional ways that the new healthcare law stifles business growth:
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.
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.
Click here to read more.
John Doe // May 24, 2010 at 4:47 pm
And in other news, a recent study suggests that child labor laws discourage hiring and hurt corporate profits.
Slide // May 24, 2010 at 7:46 pm
So who exactly is the NCPA? This is how they describe themseves:
“public policy research organization, established in 1983. The NCPA’s goal
is to develop and promote private alternatives to government regulation and
control, solving problems by relying on the strength of the competitive,
entrepreneurial private sector.”
I’m sure it was a very objective report.
jworthen // May 25, 2010 at 1:16 am
I think there is a good chance the healthcare law will cause a surge in small business creation. Many, many people in the workforce with great ideas for starting businesses have felt trapped in their jobs because they feared losing medical insurance for themselves and their families if they went out on their own.