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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.