There’s More in Healthcare Reform for Small Business Than They May Think

Healthcare reform gives small business owners more financial help than they expect.  Small businesses might be surprised to learn that they will receive more in state and federal tax credits than they expected once healthcare reform legislation goes into full effect.  According to Mark Mundaca, a Treasury Department assistant secretary for tax policy, a business’ credit will not be cut if it also received a healthcare tax credit or subsidy from the state.

Mundaca noted that small businesses can receive credits for traditional healthcare coverage, as well as add-on dental, vision and other limited-scope insurance.  As many as four million small businesses are believed to quality for this tax credit.  It is available to them starting this year, although the companies will have to wait to file their taxes in 2011 to receive the tax credit.  The Treasury Department’s guideline was issued shortly after the National Federation of Independent Business (NFIB) joined a lawsuit with 20 states seeking to overturn the healthcare law.

Dan Danner, NFIB president and CEO, says “Small-business owners everywhere are rightfully concerned that the unconstitutional new mandates, countless rules and new taxes in the healthcare law will devastate their business and their ability to create jobs.”  Countering Danner’s argument, Karen Mills, administrator of the Small Business Association, said that the majority of small businesses “are excited about this tax credit.  NFIB knows that healthcare is No. 1 concern of small businesses” and the new law is designed to help them.

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