There has been a ton of press over the past few months regarding health insurance. Democrats slamming Republicans, and Republicans slamming back Democrats.
I too have a political party. The party of the small business owner. We take all of our cash, put a business plan together, and work 70 to 80 hours per week creating the dream of building something that will live beyond our lifetime. However, with all that has gone on over the past year, where is the small business owner to turn when the policies from Washington, D.C. come to fruition.
First, I don’t want anyone telling me whether I do or do not have to provide health insurance for my employees. If health insurance is a ‘right’, then the government can certainly run itself deeper in debt and pay for it themselves. Fine me? No way. Start levying fines on the very people who will create the jobs in the future? This idea certainly doesn’t sound like capitalism, and most certainly is not going to make more small business owners excited to add more job to their bottom line.
Second, when it is cheaper for a business to give stipends to their employees for health insurance versus having a high quality small group plan, we’ve got deeper issues. When between taxes and insurance, your premiums for hiring an employees are in the 30% to 50% range certainly defeats the idea of growing a small business. Especially when the banks today want an arm, leg, and your house just to give you a loan. On average, small business owners pay 18% more for health insurance than large companies according to the Council of Economic Advisors.
Last, the final plan needs to give exemptions or tax credits to businesses with a certain amount of employees or payrolls. The job creation in the future will ultimately come from the small business owner in my opinion. Generation X will not continue to work for large employers, and you will begin to see a shift of these people becoming entrepreneurs to create their own future. Give this group the right incentives, and they will deploy their resources into growing future companies.
We don’t know where this debate will end. What I do know is that you don’t always have to build a rocketship to cross the street.
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