OBAMA'S TAX ON JOB CREATION

clipped from www.ncpa.org The landmark health reform law signed by President Obama (ObamaCare) will require small businesses to provide health insurance to their employees.  This burden will be offset by a tax credit for each employee covered.  However, the credit is arbitrarily reduced as firms grow, penalizing employers that hire more workers or increase their salaries.  Thus, the credit may discourage firms from hiring more workers or higher-paid workers, say Devon Herrick, a senior fellow, and Pamela Villarreal, a senior policy analyst, at the National Center for Policy Analysis.  How does the tax credit for small firms work?  From 2010 to 2014, businesses in some industries that employ 25 workers or fewer will qualify for a tax credit worth up to 35 percent of the employer's contribution to workers' health coverage.  Beginning in 2014: The credit is not available to sole proprietorships and their families.  http://www.ncpa.org/pub/ba703  http://www.ncpa.org/sub/dpd/index.php?Article_Category=20

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