Promoted from the diaries by Caleb.
Being somewhat of a libertarian, I wasn’t a supporter of ObamaCare. However, a few months after passage, a postcard arrived which led me to believe there may be a benefit coming to my small firm. The mailing from the Treasury Department touted a generous 35% tax credit to firms with less than 25 full-time employees averaging less than $50K per year in wages — that’s us! In fact, we’re right in the sweet spot with 17 full-time employees earning approximately $42,000 per year.

Here is a copy of the postcard.
I did a quick calculation and figured our tax credit should be about $28,000. That is 35% of the $80K we expect to spend this year on employee health care premiums. I phoned our health insurance broker and inquired whether anything special had to be done, not wanting to be excluded by some technicality. He reported there was no special requirements — more good news.
Then, a week ago I received an email from the NFIB with a link to an on-line calculator helpful in determining the tax credit. I plugged in our numbers, the ones described above, and pressed “update” to yield a calculation of ZERO — zip, nadda!
Double-checking, I tried again and again, finally concluding that the 35% tax credit will only be available to firms with ten employees averaging $25K per year. Increasing either measurement, number of employees or average salary, will greatly diminish the magnitude of the tax credit. I created the chart shown below which diagrams the limits of the “generous” tax break.

Steve Maley
KnightsofMalta
OR, if you have any ObamaCare supporters on your payroll...
LaborUnionReport (Diary) Friday, June 11th at 4:21PM EST (link)You could pay $34,000 in fines, dump your employees onto Obama’s shoulders and save yourself $46,000.
Of course you’ll be taxed on that savings, but at least everyone will have what they want: ObamaCare for the workers, more profits for you (for the short term).
Sounds like socialism will work afterall…
Until the bill comes due.
“I bring reason to your ears, and, in language as plain as ABC, hold up truth to your eyes.” Thomas Paine December 23, 1776
In any compromise between food and poison, it is only death that can win. In any compromise between good and evil, it is only evil that can profit.-Ayn Rand
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This is why I charge Obama supporters double
izoneguy (Diary) Friday, June 11th at 4:29PM EST (link)I have about 20 clients I do business with on a regular basis…
It is all service work and only a few clients know each other.
I charge Obama supporters about double what I charge conservative clients. Thankfully I only have a few clients who support Obama….
and of course those are the ones crying the blues about how bad business is.
The point cannot be made often enough: Modern liberalism, as embodied in the Obama presidency, is the defender of the status quo. And the status quo is a road to economic ruin. Political forces cannot redistribute the wealth that the economic system does not produce.
Do you actually ask?
Menlo (Diary) Monday, June 14th at 1:25PM EST (link)I’ve never heard of any business not directly involved in political campaigning asking customers which candidate or party they supported. I would not let the word get out though. If the Obama supporters knew they were being charged double, I’d think they would sue.
“The ultimate touchstone of constitutionality is the Constitution itself and not what we have said about it.” -Felix Frankfurter
Hmm...
LibertarianHawk (Diary) Friday, June 11th at 4:52PM EST (link)It also gives you a heck of an incentive to refrain from either growing your payroll or giving people raises.
Sounds like a great idea there, Barry.
Heckuva job, Barry nt
aesthete (Diary) Friday, June 11th at 5:08PM EST (link)The act of defending any of the cardinal virtues has today all the exhilaration of a vice – G.K. Chesterton
Faux tax credits from a faux president nt
Common_Cents (Diary) Friday, June 11th at 5:09PM EST (link)Obama=Golfer in Chief, Leading from,
behind, the Back Nine.Leaders don’t create movements. Movements create leaders. Get involved. Your future depends on it.
Govt “invests” YOUR tax money for POLITICAL return rather than economic return.
It's a lie, It's a lie,....
Vassar Bushmills (Diary) Friday, June 11th at 5:32PM EST (link)…but we’ve been down to Derby, sir, and we have seen it too.
—The Derby Ram
Why do tax exempt groups need a tax credit?
Tbone (Diary) Friday, June 11th at 6:09PM EST (link)According to the post card they can get a 25% credit.
Envisioning when all that is Left is the Right.
Actually, what they said was "true"
redsoilman Friday, June 11th at 8:04PM EST (link)The post card indicates that if you have fewer than 25 employees who make (on average) less than $50,000 you may be eligible for a 35% tax credit on premiums paid.
Of course, they could have said is that if you have fewer than 5,000,000 employees and an average salary of less than $5,000,000 you may be eligible for said credit. The truth value would have been identical. The key is the word “may.” All that means is that the credit is available to some portion of the set they have defined.
Just because we are all stupid (by definition) conservatives, we think they that they were actually trying to convey something about the entire group they were describing. If we would just embrace the power of words like “may” we would be freed from our elitist concepts of precision and of truth. All would be well with the world then. We could then enjoy the benefits of the Chosen One’s largesse without actually costing the government a dime in tax revenues.
The purpose of Compulsory Education is to deprive the common people of their commonsense. -G.K. Chesterton
I agree....
jiminga Saturday, June 12th at 7:37AM EST (link)BUT, I’d bet that the authors of the postcard actually haven’t read the law either. They just printed up the false talking points. Welcome to Obamaland, wher all is as The Great One says it is.
also agree, but
suzanneatsuperior Monday, June 14th at 10:20AM EST (link)maybe they really mean you need 10 or less working and that they make together a total of less then 50,000………… That would be obamama math that is being taught in Cal schools.
A little government coulda' worked
Hammer2008 (Diary) Friday, June 11th at 9:40PM EST (link)The postcard should have just said, “Dear small business owner, suck it. ~ your pal, President Obama”
~~~~~~~~~~~~
Too much noise! “Noise! You’ll have noise enough before long. The Regulars are coming out.” ~ Paul Revere (April 18th, 1775′s eve…)
Obamacare supports the hiring of illegals
lynnbo Monday, June 14th at 8:33AM EST (link)HA HA Obamacare supports the hiring of illegals which should increase in hugh numbers and businesses will save billions. American workers except unions are shafted once again.
I Think The "Mays" Have It ...
bay0wulf Monday, June 14th at 12:20PM EST (link)redsoilman stated it accurately I believe. The words “may” & “might” are key words that are frequently used along with “win” and “receive”.
A few things come to mind, Lottery Tickets, Publisher’s Clearing House, Sweepstakes, No Purchase Necessary, While Supplies Last … there are more.
Jiminga mentioned that the writers of the postcard probably didn’t “.. read the law either” Truthfully, copywriters (the folks who writ these things) are not lawyers and may not have known what they were reading if they did. Their job is to get your attention and gt you o react positively towards the product they are “pushing”.
Vaguely worded possible outcomes avoid all legal problems latte. You were “promised” nothing more than the possibility. So see? No “promise” was broken.
The postcard was supposed to make the recipient feel “All Warm And Fuzzy” and all too often it (and things like them) work.
“I am going to go to Washington DC and fix all the problems I possibly can” can easily be fulfilled by sitting in the senate for a day snoozing, a quick scratch of the butt, and the rest of the term spent globe-hopping on the taxpayers’ dime. The key phrase was “… I possibly can”
Thankfully even most of our worst politicians aren’t quite that bad … though I recall looking up some of our elected officials’ records and can’t say that they were much better.
Anti- Incumbent
dons621 Monday, June 14th at 12:34PM EST (link)Vote Anti-Incumbent across the board Period!!!!!
G'bye
Neil Stevens (Diary) Monday, June 14th at 12:45PM EST (link)Nope, you Democrat troll.
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“I rejoice that America has resisted.” – William Pitt, the Elder
Reality!
miroco Monday, June 14th at 3:13PM EST (link)I own a small service company, the only one who survived to do what we do in our region. I refused to work for any Obama supporter as I can get along without them, one did threaten to sue. she called last week begging us to take her back and vowed never to vote Dim again, seems she got her health care proposal for 2011.