The proposed extra tax would be on a sliding scale: 1 percent for joint filers with more than $350,000, 1.5 percent for joint filers with more than $500,000, and 5.4 percent for joint filers with more than $1 million in adjusted gross income. In addition to higher taxes, the House health care bill would force small businesses with at least $250,000 in payroll to provide health insurance or pay a tax penalty up to 8 percent of payroll.
And as if the initial proposed tax rate wasn’t high enough, there’s every chance it could go up.
The House bill would empower the Office of Management and Budget to jack the tax rates up to 2 percent for those making $350,000 and 3 percent for those making less than $1 million, if bureaucrats decide that’s necessary. Businesses would have an even harder time preparing for the future, because they’ll never be able to know when their taxes may increase or how high they’ll eventually go. Few business owners would hire new workers under those conditions.
The national unemployment rate in July reached 9.4 percent, and of course we all want to bring that number down by creating as many jobs as possible, as quickly as possible. To do so we need to shore up small businesses, not chip away at them with higher taxes and expensive mandates.
As summer winds down, Obamacare seems to be on life support. Small-business owners have spoken. We ought to pull the plug, and start over again with an effective reform plan that won’t hammer our nation’s economy.