We’ve seen a lot of press concerning health care reform and small businesses over the past few months, and have largely stayed out of it. Bizjama really tries to avoid the politics. But hell, it’s Sunday, so here we go, in the form of two articles/op-eds staking out very different positions on the subject.
The first is the Christian Science Monitor, which sees Obama healthcare as helping small business:
Many—though certainly not all–small businesses would come out ahead. There are lots of health bills out there, but let’s look at President Obama’s version. In it, small businesses would get tax subsidies for offering insurance to their workers, low- and some moderate-wage workers will get their own subsidies to purchase coverage (and some may even be newly covered by Medicaid). Small firms would get access to exchanges that should make it less costly for them to insure their workers. And, perhaps most important, the bill would take some small steps to control future health costs.
The article then goes on to look at some specific points that critics have with the plan, including the excise tax on high-cost employer-sponsored plans. Then there is an op-ed from The Philadelphia Bulletin, which offers up some good points (ex. support preventative medicine), but dips heavily into the right-wing talking points to make its point:
There are many people who will be unfairly burdened by Mr. Obama’s takeover plan. Primarily, it will be the American wage earner and the small business owners who employ most Americans.
Small businesses are being suffocated by taxes and regulations.
The requirements in the health-care reform bill before Congress will add fees, regulations and red tape jeopardizing many small businesses existence.
A typical small business makes 6-8 percent pre-tax income — a $3 million in sales company with 20 employees makes $210,000-$250,000/year. After taxes and some depreciation, this small business would net $130-$150K. If America’s small businesses lose another 2-3 percent, it may no longer be sustainable to stay in business.
Is it any wonder, with burdens like these planned for businesses, that jobs are not being created? And, if a company were to expand, going offshore may not be profit motivated but survival motivated. We must create a business friendly environment in Pennsylvania and in America, not the anti-business climate that exists today.
Bottom line? Health care in the United States is a joke, and something needs to be done, either now, or in a couple of years from now when the whole system collapses under its own weight (guess which would be better?). When the WHO ranks the US as being 37th in terms of health care systems in the world, that kind of says it all.
Republicans are more worried about their ability to get elected if a popular, successful program gets passed under Democratic leadership then they are about responsible legislation.
They certainly have a point.




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