ObamaCare will hurt, not help, small businesses -- and their employees -- because of provisions that defy economic common sense.
In fact, ObamaCare tax credits that offset health insurance costs for firms with 25 or fewer workers making an average of $25,000 annually are counterproductive for employment and wage growth -- a major economic shortcoming, particularly when far too many Americans are jobless.
One author of a new National Center for Policy Analysis study on the credits even told The Hill newspaper that they create a "perverse incentive not to have businesses grow by not encouraging them to hire new workers."
The tax credits decline as a firm's average pay rises -- and as a firm's work force expands beyond 10 employees, disappearing entirely once it reaches 25 employees. That discourages such small businesses from adding jobs, particularly higher-paying ones, or raising wages.
And that spells bigger trouble for workers who don't make a lot to start with.
"An unintended consequence ... is that some low wage workers will be unemployed who otherwise would not," says the nonprofit, nonpartisan center that did the study.
That's the sobering reality behind ObamaCare's soaring rhetoric -- and another burden for America's struggling economy.
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.