So I've been spending some time reading the Health Reform Bill currently getting trashed in congress via Open Congress and I'm fired up again due to the marketing by the Obama Administration. The latest is the propaganda they are spreading on making insurance affordable for small business. When I read the bill, I see the ability to take advantage of credits, but it is NOT absolute as Axelrod and the rest of the administration would have you believe. Here's an excerpt from the now infamous SPAM mailing by the Obama Administration with David Axelrod's signature on it...
"Reform will benefit small business - not burden it: It’s a myth that health insurance reform will hurt small businesses. To the contrary, reform will ease the burdens on small businesses, provide tax credits to help them pay for employee coverage and help level the playing field with big firms who pay much less to cover their employees on average."
And here's the propaganda found on the White House Reality Check site
The plans have a tax credit for small businesses to help them provide health insurance for their workers, to reward them for doing the right thing by their employees.
So logically the small business owner would think that they are definitely going to get a credit as a reward for doing the right thing. Right? No reasons NOT to support this right? Well as usual the Obama administration plays around with words and sells way too much with something as sensitive as health care. Here's what the bill actually says regarding the small business credit..
SEC. 45R. SMALL BUSINESS EMPLOYEE HEALTH COVERAGE CREDIT
- You receive NO CREDIT for an employee that makes more than $80K per year. That's not so good in a bunch of states like say New Jersey. This exception also means that the owners of these businesses are also counted as employees, so probably you are NOT going to SEE ANY CREDIT for your own health insurance.
- The credit gets phased out by some percentage if your TOTAL company payroll is greater than $20K which means the only way to get the full 50% credit is if your entire payroll is less than $20K. Wow that's generous.
- Finally the credit is also reduced by some percentage if you employ more than 10 but less than 15 employees.
Seriously people does this sound like the Obama Administration should be marketing the small business health credit in the manner in which it does? Right off the bat all of your HIGHLY PAID EMPLOYEES INCLUDING THE OWNERS WHO MAKE $80K OR MORE ARE EXCLUDED. Then if you have other employees, you've probably already busted the $20K payroll threshold so any credit you make on anyone making less than $80K will be reduced.
I think the Obama Administration should be ashamed of themselves for marketing the small business credit in this manner. It is definitely not an ABSOLUTE credit and probably at the end of the day small businesses will be better off paying the fine and pushing employees to the public option rather than providing the benefits with these potential credits.
Am I wrong? Let me know.