Health Care Ruling Reactions
5:27 pm
Thu June 28, 2012

Small Business Owners Divided Over Health Care Ruling

Small business owners are also trying to gauge what the health care ruling means for them. Their views are sharply divided.

Patrick Connor is the Washington state director for the National Federation of Independent Business. That group was the lead plaintiff challenging President Obama’s health care law.

Connor says one big problem with the law is that businesses will have to pay higher taxes.

"There's two different Medicaid or Medicare taxes that are being imposed over time in addition to what they call a health insurance tax, which is an assessment on the insurance companies that is going to passed along on every plan that they write to us small businesses and to individuals buying directly from those carriers."

Those taxes help pay for the expansion of subsidized health insurance. Some small businesses are actually getting tax breaks. Molly Moon Neitzel is the owner of Molly Moon’s Homemade Ice Cream in Seattle. She says since the health law was passed, she’s been able to get tax credits the past two years because she offers health insurance for her employees.

"That was really helpful," Neitzel says. "In 2010, it was more than $11,000 that I got back and in 2011, it was more than $16,000."

The tax credits apply for the smallest of businesses –- with 25 or fewer full-time employees. The IRS says that in 2014, those small businesses will qualify for a bigger tax break.

Copyright 2012 Northwest News Network