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Fuzzy Math: Tax Cut Doesn't Add Up for Some

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posted on May, 20 2010 @ 09:20 AM
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Silly Small Buisness, Tax Cuts Were Not For You......


When the Obama administration unveiled the small business health care tax credit earlier this week, officials touted its "broad eligibility" but the details are easily lost in the fine print.

WASHINGTON -- Zach Hoffman was confident his small business would qualify for a new tax cut in President Barack Obama's health care overhaul law.

But when he ran the numbers, Hoffman discovered that his office furniture company wouldn't get any assistance with the $79,200 it pays annually in premiums for its 24 employees. "It leaves you with this feeling of a bait-and-switch," he said.

When the administration unveiled the small business tax credit earlier this week, officials touted its "broad eligibility" for companies with fewer than 25 workers and average annual wages under $50,000 that provide health coverage. Hoffman's workers earn an average of $35,000 a year, which makes it all the more difficult to understand why his company didn't qualify.

Lost in the fine print: The credit drops off sharply once a company gets above 10 workers and $25,000 average annual wages.

The Treasury Department, which administers the new credit, did not dispute the calculations.

To get the most out of the new federal credit, Hoffman said he'd have to cut his work force to 10 employees and slash their wages.




posted on May, 20 2010 @ 09:20 AM
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Some more details about the coveted HCR bill. This business man in Illinois for sure thought he could qualify, especially since he was below the cutoff point to receive such credit. Ah wait, to receive the maximum credit you have to be below 10 employed workers. So anyone business with more than 10 workers is not considered a small business,



posted on May, 20 2010 @ 10:02 AM
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I asked my boss if he could afford to provide me with HC under the new law. He said "oh don't worry, we'll have tax credits to take care of that". He has 22 employees.

Looks like he's going to have to layoff a few of us anyway.



posted on May, 20 2010 @ 10:08 AM
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reply to post by projectvxn
 


He isn't considered a small business, He is a big time employer. I would break it to him nicely if you feel as though you need to burst his bubble.



posted on May, 20 2010 @ 10:58 AM
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reply to post by prionace glauca
 


There's no point in it actually. He's run this business on luck for the last 6 years and nothing is likely to change.

He's a committed supporter of the Progressive agenda, and regardless of what I tell him he will continue to believe what he wants.

When he starts having to lay people off I will say 'I told you so' then.

[edit on 20-5-2010 by projectvxn]




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