Despite Overwhelming Negative Feedback, Obama’s Small Business Chief Unaware of Small Businesses Struggling With Obamacare
Washington,
Nov 26, 2012 -
Despite Overwhelming Negative Feedback, Obama’s Small Business Chief Unaware of Small Businesses Struggling With Obamacare
SBA Administrator Says She Hasn’t Heard Of Any Small Firms Who Strain To Comply With Obamacare Requirements
Last week, President Obama’s head of the Small Business Administration, Karen Mil that she was unaware that small firms are struggling with Obamacare requirements. When the host described the feedback he’s received from small businesses who are cutting hours and services or facing the possibility of going out of business, Ms. Mills said “…I travel all around the country, every week I go to a different part of the country. I'm with small businesses. And I'm not hearing that.” Click here to see the video.
The health care law has made it harder for small businesses to hire and grow. Even a small business health care tax credit has proven to be ineffective in helping companies comply with the health care law, according to a May GAO report requested by House Small Business Committee Chairman Sam Graves.
As small businesses face the uncertainty of the fiscal cliff, and continue to be left out of negotiations, it is important for the Administration to hear what we are hearing from small businesses about the onerous requirements of the health care law. The law requires businesses to pay higher taxes, provide health insurance or pay a severe penalty, comply with more regulations, and navigate state exchanges to purchase health insurance, even as many states haven’t set up exchange systems.
Don’t take our word for it. Here is what small businesses have been telling us through our interactive web forum “Small Biz Open Mic”:
“Obamacare essentially raised our healthcare premium last year almost 30%. The everyday costs of doing business has gone up 20% annually for the past 4 years. We are not growing as fast as we would like to and we are holding back on hiring, because we have no idea what kind of taxes we will be paying next year and what kind of an affect Obamacare will have in the coming year. I am not sure we can afford another 30% increase in healthcare. According to the federal government, I am rich. This shows how disconnected our president and everyone in Washington are from real businesses in America and how businesses operate. The goal is to make a profit. Profit is not a four letter word.”
--Gayle Heath (Austin, TX) ATG, Inc. September, 2012
“There is a significant opportunity to grow business and I would like to expand the business further. However, due to the uncertainties with the new health care law, questions about the Obama Administration's wanting to 'spread the wealth' via taxation and the question about sequestration (cutting funds for medical research), I have decided to allow only modest growth of the company keeping it small to avoid the ramifications of high taxes and requirements for corporate health care.”
--David Bagley (Poway, CA) Advanced BioMatrix, September, 2012
“I own a small business in health care. We are doubly burdened by decreasing revenues from Medicare reimbursement cuts in the ACA, simultaneously not daring to hire and grow because of the escalating taxes imposed by the affordable care act. My staff is pleading for raises and we have to make cuts instead; people are leaving for the first time in our 9-year history. This is the most "anti small business" administration ever.”
--David H. (Brewer, ME) Nurse Anesthesia of Maine, April, 2012
“Increased taxes, regulations and health care costs make it increasingly difficult to the point that there's no sense in running a business. It's one thing to deal with the stress and risk that comes with running a business but you do it because you have the opportunity to make a good income, what was the American Dream. But when you can go work for the federal government and make a decent wage with excellent benefits and NO stress, then why beat yourself to death dealing with running a business.”
--Barry Lewis (Mechanicsville, MD) Lewis Engineering Associates, Inc. April, 2012
“We are a small business in Pennsylvania, that would love to grow and has opportunity to do so, however, the uncertainty of Washington and the impending health care legislation has caused us to remain at our current level of operations. I would like to see legislation that has a true impact and targets real businesses for example, There is a tax credit available for those employers who pay 100% of the their employee benefits however, our small business is not eligible b/c my accountant says our employees make too much money? So in essence there is a credit for employers who pay health benefits for their employees but only if those employees are paid salaries equivalent to those who work part time or if they are part time. I guess what I am asking for is some small business tax credits / regulations that make sense and are not designed for the purpose of political platform but rather for true implementation and relief for small businesses.”
--Tammi Schaible (Souderton, PA) V-Talese Incorporated, April, 2012
“Healthcare challenges are our largest administrative hurdle. We are a small business providing employee assistance program services. By the nature of our business, i. e. providing mental health and other support services for businesses large and small, we are seeing an increase in business and so are hiring. However, because of the cumbersome regulations, we will strive to stay under the 50 employee mark. We provide services nationally and globally, and I find it sad to note it is easier to do business in China than in the USA!”
--Patricia Vanderpool (Daphne, AL), EAP Lifestyle Management , LLC, February 2012
"Easy to sum up... unfunded mandates and over regulation - taxes, employment, operational, and reporting at both the state and federal government level. Very little, if any, regulatory or reporting requirement benefit the small business, but impose huge workloads. Employment taxes, healthcare mandates, and employment reports are a significant dis-incentives to create new positions and hire additional employees.”
--David Mower, (Kilmarnock, VA) NN Wifi, LLC, February 2012
“Because we are self employed we have to have personal health insurance for our family. Since Obamacare was introduced, our monthly premium has gone up 40%. At this rate we not only struggle to afford our own health insurance, but we also don't see how we will be able to afford health insurance for our current employee, let alone any future employees. Without a solid healthcare package, we cannot complete with larger businesses for experienced, skilled workers. This is hampering our company's growth.”
--Kathryn Jones, (Fallbrook, CA) TJ Technologies, February 2012
“The cost of employee health insurance is by far our biggest deterrent to hiring new employees. The cost of health insurance at our company is more than our rent and utility costs combined!”
--Bill Waseleski, (Bristol, CT) Century Spring Mfg. Co. Inc., February 2012
"The 2013 implementation of the health spending bill will impose a tax burden on the firm, even though we have a health care plan, we understand that all firms will have to pay additional payroll taxes based on the gross payroll. This is a disincentive to hire new employees and adds a new tax burden that did not exist previously."
--Sara O'Neil-Manion, (Bethesda, MD) O'Neil & Manion Architects P.A. February 2012
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