Health Care Thoughts: Small Business, Obamacare, Tax Credits
by Tom aka Rusty Rustbelt
Health Care Thoughts: Small Business, Obamacare, Tax Credits
I am still struggling to get my arms around whether or not small businesses will dump employees into health exchanges rather than continue health care coverage. And still looking at related issues.
So what to make of the AP tax credit story today?
There are arguments about design, about complexity, about the tilt toward low wage employers, but whatever arguments we like or dislike, the program isn’t working very well.
CPAs may well be baffled on how to advise clients, and may find themselves doing a lot of calculations that are for nought.
Any thoughts welcome. Reference materials follow:
AP Story: http://news.yahoo.com/obamas-health-care-aid-small-firms-disappoints-070352794.html
IRS Form: http://www.irs.gov/pub/irs-pdf/f8941.pdf
IRS Form Instructions:http://www.irs.gov/pub/irs-pdf/i8941.pdf
Rusty,
Don’t forget to factor in the “pain in the a$$” effect of whatever decision the small business owner makes. Not everything comes down to straight $. It may be cheaper to keep insurance for your employees but the pain in the a$$ factor may push the owner to just dump them anyway. How much is the owners time worth?
The contrary is alos true. Does the owner want to risk losing great employees over a few bucks and some extra paperwork?
Islam will change
Just found this, have not read it yet but looks interesting:
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2067138&download=yes