Obama Courts Small Business on Health Care - BusinessWeek

by John Tozzi

The House bill includes higher penalties on businesses that don’t provide insurance for their employees; those with more than 100 workers would be expected to cough up a penalty of 8% of payroll. And individuals who don’t get coverage could face a penalty of 2.5%.

But the biggest difference — and the biggest fight ahead — comes in how the bill would be paid for. While the Senate wants to tax so-called “Cadillac” health care plans in order to fund health care reforms, the House wants to impose a surtax of 5.4% for individuals making adjusted gross incomes of over $500,000 and couples over $1 million a year to pay for a chunk of their bill. I don't know what kind of health care reform will come out of this session, but I strongly suspect it won't be much. There is, however a silver lining behind this very dark cloud. I am reminded of the Civil Rights Act of 1957. Don't be embarrassed if you've never heard of it, there really isn't a hell of a lot to remember about it; a mere pittance, really - a scrap of leftovers tossed out to "American Negros" (in the parlance of the age) in order to appease them. But it made the passing of the Civil Rights Act of 1964 - the one we remember - all-the-more easier seven years later.

We'll live to fight another day.

The long-term costs to small businesses and their owners will make the short-term savings of Obomacare look like a joke... in hindshight

Unfortunately, many businesses are in a cash-flow crunch. The cost of being a good corporate citizen - paying health premiums, local, state and Federal taxes of all varieties - is rising and becoming more unpredictable. Small business owners are faced with an Ishmael moment: Hungry enough today to trade a birthright for today's bowl of soup.

Please, business leaders who recognize the cost of turning power over to the Feds, take time speak up against the onslot of tax and regulation to pay for this health-care soup!

Charley Ellison

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