SmallBusinessNewz

Plan would help offset cost of premiums

Small businesses that provide healthcare insurance for employees would see a tax credit of as much as 50 percent under a plan proposed by Presidential candidate Senator Barack Obama.

The expense of health insurance makes it an obstacle for small businesses, but it's the one benefit employees tend to seek more than any other when job hunting. A business may find itself out of the running for a qualified employee if they can't offer this benefit.

Obama's plan, discussed with Latino advocacy group National Council of La Raza in Boston, called for offering a tax credit to businesses that give employees health insurance. The Boston Herald noted how Obama's political foe Hillary Clinton advocated a similar plan.

"My plan won’t impose any new burdens on small businesses. Instead, we’ll help them not just create new jobs, but good jobs - jobs with health care, jobs that stay right here in America, the kinds of jobs we need in our communities,” he said.

The National Federation of Independent Business said on its Fixed For America website that of the 47 million Americans who lack health insurance, over 28 million are small business owners, employees, or dependents. NFIB has been working with the House for a year on changes to the Small Business Health Options Program (SHOP) Act, which includes a tax credit for small businesses.