News Summary: Small biz tax credit disappoints

AP News
Posted: May 30, 2012 3:29 PM
News Summary: Small biz tax credit disappoints

THE NEWS: Response to a health insurance tax credit for small businesses, part of President Barack Obama's health care law, has been disappointing to far, with few businesses claiming it.

THE DETAILS: The credit, time-consuming to apply for and lacking enough financial reward to make it attractive, was claimed by only 170,300 businesses out of a pool of as many as 4 million potentially eligible companies in 2010.

THE ANALYSIS: Congress' nonpartisan Government Accountability Office identified several issues, including that the tax credit is structured so its biggest benefits go to very small companies paying low wages.