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Bait and Switch
Posted by Randy | June 15, 2010
A “tax credit” included in the healthcare overhaul was publicized by the Administration as helping to ease the burden that small businesses face in order to provide health insurance to their employees. The credit is temporary and available to businesses with 25 or fewer employees and an average annual wage base of $50,000 or less.

However, the White House failed to publicize that the credit drops off sharply once a company gets above 10 workers and $25,000 average annual wages. In fact, the nonpartisan Congressional Budget Office estimates that it will only help 12% of small businesses.

This means many small business owners may be facing the reality that their company won’t qualify for the tax credit. As a result, many will have to eliminate jobs and cuts salaries to get the most from the tax credit.  

Several business groups, including the National Retail Federation, Small Business & Entrepreneurship Council, and National Federation of Independent Business, have already dismissed the idea of using it because it is too restrictive, complex and will not help create jobs as intended.

Instead of using a bait and switch approach with our small businesses, we need to develop lasting solutions that encourage and support American business. Read about some of my work to encourage small business opportunities and to create jobs for Americans here.
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