Small-business owners appreciate tax break
Tuesday, September 28th, 2010
Small-business owners told Pennsylvania Gov. Ed Rendell Tuesday that a provision of the recently passed health-care law is helping them to help the economy.
Three entrepreneurs told the governor they appreciate the federal tax credit that gives them 35 percent of the cost of providing health insurance to their employees.
"If small business is the backbone of our economy, you've allowed us to stand up a little straighter," said Phoebe Wood, who runs a framing business in Jenkintown. She says she must offer health care to be competitive.
Dr. Francie Rubin, a veterinarian with 16 employees, says she will be able to cover more of them with the credit.
"I very much welcome this tax credit because one of my ambitions or goals is to provide health care to all my employees," says Rubin.
Excuse me Leon….are you inferring that the small business owners above are fudging the truth? When I owned a small business in NYC I paid taxes to EVERYONE and federal taxes were included, I assure you. I would have loved the help from the government!
Kind regards
Almost all incorporated small businesses are sub chapter S or LLC corporations. Small business owners do this to avoid the double taxation of corporate and personal taxes on earnings. That means that small business don’t pay federal income taxes, the owners pay personal income tax from the profits of the company, so this so-called tax credit is bogus for most small businesses.
This is just sick! To offer this tax break for healthcare and politicians brag about it when small businesses can’t use it is beyond warped. If you really want to help small businesses, you could report about how there is now a way for part time workers or family members to pool money from each job to buy health insurance. A company called LyfeBank is helping employers who couldn’t afford employee health insurance to now do so by collecting employer contributed healthcare funds to employee-owned accounts. Employees can use their accumulated account funds to purchase an insurance policy of their choice, and pay for other qualified medical expenses with Visa “smart” cards, all with pretax dollars. A brief visit to LyfeBank.com will explain this process