POLITICAL PARTY POOPER

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Health Care Bill to Level Playing Field For Small Businesses

Posted by politicalpartypooper on April 11, 2010

Deere, Caterpillar, AT&T and other major U.S. Corporations are complaining that the new health care bill will cost them millions in new taxes. The truth of that matter is that the bill won’t cost them a penny in new taxes; it’s merely eliminating what is known as a double-dip tax loophole. According to CNN:

The charges stem from a part of the law that eliminates tax deductions for Medicare prescription drug subsidies.

When the Medicare prescription drug program was passed in 2003, it included a provision granting employers a subsidy of 28%, or up to $1,330, per retiree for prescription drug costs. Even though the federal subsidies were already tax free, employers could still write them off on their income taxes, in addition to writing off their own contribution. The new law maintains the subsidy as a tax-free incentive to employers, but prohibits them from taking it as a deduction.

Basically, this means that a loophole which allowed corporations to write off more than they should have been allowed has been closed. You would think that Conservatives would see this as a positive, considering how anal they are about tax loopholes. Guess again. Last week, all they could talk about was how the new health care bill was going to add insurance costs to our major corporations, who would then be forced out of business or into massive layoffs. So much for that lie.

But I must ask, if closing this loophole, which was giving corporations something they shouldn’t have received in the first place , will be so harmful to them, so what? What’s the big deal?

Isn’t the FREE MARKET all about the best companies, big or small, all competing in the same environment? The good ones thrive, the bad ones don’t survive. If a company, yes, even a major corporation, cannot compete in the same marketplace that everyone else does, are we supposed to feel sorry for it, and create special rules for it? Hell no! A Free Market economy means that if you can’t do business effectively, you die. So what’s the big deal about these major corporations having these so-called new costs? So what if they lay off more employees. So what if they go under? Isn’t that how the free market is supposed to decide who survives and who doesn’t?

For decades, small businesses had to compete in an uneven environment when it came to health insurance. Large corporations could attract the best talent, because they could offer a huge pool of insureds to an insurance company, while small businesses were left in the volatile private market. Huge companies could offer better benefits more cheaply than their small business counterparts…and they called this the fair free market. So be it. Now the playing field has been leveled, and Conservatives are whining because their major corporation sugar-daddies might not have as much money to give them in bribes. Waaaaaaah!

But what I don’t understand is why Joe-Six-Pack, who doesn’t own a major corporation, would whine right along with them. Really, what is he whining for? This health care bill has just created an environment where more, not fewer, small businesses will be able to offer less expensive, equivalent benefits to those that the major corporations offer, and this is somehow a bad thing? Doesn’t Joe-Six-Pack know that more hiring is done by small businesses than any other sector, and that those small businesses are usually local, good paying jobs? Doesn’t Joe-Six-Pack know that it is small businesses, and not huge corporations, who create the most jobs; especially during recessions? If you want to get out of a recession and reduce unemployment, help small businesses. That’s an undeniable fact.

So I ask you, why would you whine about this health care bill when it is going to help small businesses compete? Why would you complain, in lip sync with your Republican masters, in saying that the health care bill is bad for business? I’m a small business owner. I can tell you right now that because of this bill, the talent pool I have available to me for hire just expanded exponentially, my health insurance costs are going to go down dramatically, and that will leave more money left over for higher wages and better benefits. Now someone please tell me how this is bad for Joe-Six-Pack?

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One Response to “Health Care Bill to Level Playing Field For Small Businesses”

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