Saturday, July 25, 2009

Obama Seeks Backing From Small Business on Health Reform

WASHINGTON – The Obama White House will seek to shore up support for its health-care overhaul this weekend by reaching out to millions of small-business owners and employees.

With public doubts about reform on the rise, President Barack Obama will focus his Saturday address on the advantages of reform for small business. White House officials also will invite feedback and questions on health care through LinkedIn, a social networking service that counts 12 million small-business owners and employees among its members, according to the White House.

The top White House economist, Christy Romer, also will hold a live online video chat on Wednesday.

In advance of those events, the White House Council of Economic Advisers, which Ms. Romer chairs, released a report Saturday morning addressing the advantages it sees for small businesses from overhauling the health-care system.

It counts among the benefits reduced costs of health care coverage – the report estimated that small businesses pay as much as 18% more than big businesses – and expanded access to coverage, through creation of insurance exchanges.

The report also noted that certain small businesses would qualify for tax credits for offering health care. The House Democrats' draft bill, for example, would allow a firm with eight employees that paid $20,000 per worker in wages and $8,000 per worker in health insurance premiums would qualify for a total tax credit of $32,000, the report says.

The White House report sought to counter claims by critics – including Republicans – that the Democratic plans would hurt small businesses. "What we found is the exact opposite," Ms. Romer said in a conference call with reporters. "The current system is really working very poorly" for small businesses.

Republicans responded skeptically. "There's a reason why almost every employer and small business group is opposed to the Democrats' government takeover of health care, and that's because it would impose new job-killing taxes during a recession," said Antonia Ferrier, a spokeswoman for House Republican Leader John Boehner of Ohio. "No report can change that."

Republicans have criticized several features of the health-care overhaul, such as coverage mandates for larger businesses and an optional government-run health care plan. Lately, they've focused their ire on a proposed surtax on high-income taxpayers to help pay for expanded access. That would likely hit a number of entrepreneurs, executives and professionals who effectively pay tax on their business profits at individual rates.

By JOHN D. MCKINNON
Write to John D. McKinnon at john.mckinnon@wsj.com
http://online.wsj.com/article/SB124848776710780855.html

No comments:

U.S. News Labels