Side Effects: Obamacare’s Small Business Tax Credits Won’t Go The Distance

Kathryn Nix / September 13, 2010

Will more small businesses be able to offer their workers health coverage under Obamacare?  The legislation creates a tax credit to encourage just that.  But a new report from The Commonwealth Fund says it probably won’t help much.

Though small firms eligible for some level of the tax credit employ approximately 16.6 million employees, the report estimates that businesses that might actually take advantage of the credit employ only 3.4 million workers. Moreover, a large portion of those 3.4 million already receive health insurance through their job.

The Washington Post’s N.C. Aizenman notes:  “those firms that do not offer coverage are unlikely to consider the tax breaks enough of a financial incentive to start doing so.” (more…)