The American Rental Association (ARA) and The Small Business Coalition are fearful for the economic future and well-being of small businesses, including small rental businesses, following the signing into law the New Health Care Reform Bill by President Barack Obama.
The American Rental Association had previously lobbied their members to contact their government representatives and urge them to vote “no” on the Health Care Reform Bill. The Health Care and Education Affordability Reconciliation Act of 2010, and the Patient Protection and Affordable Care Act passed the House of Representatives on March 21, 2010, and was signed into law by President Barack Obama on March 23, 2010. There were no Republicans who supported the bill.
Some of the concerns of the ARA and the Small Business Coalition include:
• With a penalty of $2000/worker for Health Care mandates there will be no incentive for small businesses to grow and add jobs, particularly if they are close to the mandate threshold. This mandate includes part-time employees, resulting in employers being less likely to hire part-time workers.
• New tax on small business’ health insurance plans. Although the cost is supposed to be passed on to the consumer, due to union, and big business exemptions, small business will end up with the burden of most of this new tax.
• The New Medicare payroll tax which is to increase to 3.8 percent. Firms and small businesses that account for more than one-quarter of the American workforce, are the most likely to see this tax increase.
“This coalition has been working for nearly two decades to try to find affordable reforms that will help lower health-care costs for small businesses. Despite the lip service from Washington, small businesses know that this bill will never do that for them. Instead, on top of this bad economy, small businesses are bracing themselves for a huge tax increase that could keep them down forever.”
Fear of rising tax costs, and hurt job growth, in an already tough economy, are strains small rental business owners will now have to face, with the passing of the new law.