Thursday, April 1, 2010


CNN reported today on President Obama's trip across the nation to extol the virtues of his health care law. In a speech in Maine he said:

"This health care tax credit is pro-jobs, it's pro-business, and it starts this year," Obama said.

"For small-business owners who don't currently provide health insurance, they'll be able to factor in this new benefit in deciding whether to do so. And with that savings, employers may be able to cover an additional worker or hire that extra employee they've needed."
Sounds awesome! In the very next paragraph, the reporter expands on Mr. Obama's point.

Under the new health care law, small businesses are immediately eligible for a tax credit covering 35 percent of the premiums paid to help cover their workers. The credit is set to expand to 50 percent of premium costs in 2014. Firms can claim the credit between 2010 and 2013, and for any two years afterward.
Let's recap. Say it will cost a small business owner (that doesn't currently provide health insurance) $10,000 to cover her employees. She would get $3,500 back on her taxes. So, by Mr. Obama's logic, this business owner (who just spent $6,500 covering her employees) will now be able to take this 'savings' and hire an additional worker.

If Michelle O. came back to the White House with $4,000 worth of clothing and exclaimed, "I found an awesome sale at Nordstrom. Look at all the money I saved!"; would Mr. Obama agree? Apparently, he would.

1 comment:

Anonymous said...

One should be worried when no one making laws or setting economic policy in the White House or on Capital Hill has ever signed the front of a pay check.