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Health Care: No Savings, More Taxes

Editor’s note: Obama says that the lack of purchasing power of small business causes it to spend 18 percent more. On the otherhand he wants to charge small businesses an 8% payroll tax if they don’t offer healthcare. The 8% is on the total payroll. The 18% is on a benefit to employees that is less than 8% (otherwise if it is % or more businesses will simply drop health care and let the government provide it to their employees. If it is more than 8% then the government is going to have another built in health care cost for which it has no revenue? Do you hear your taxes increasing? Perhaps that’s why CBO said, anew, that no savings would be realized.

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WASHINGTON — The Congressional Budget Office said Saturday that a new agency proposed by President Obama as a way to cut health costs might save only $2 billion in its first four years, and that there was a high probability that “no savings would be realized.”

The report came as Mr. Obama tried to build support for his health care plan, arguing that small-business owners would benefit because they could buy coverage through an insurance exchange and receive tax credits to help pay for employee health benefits.

In his weekly radio and Internet address on Saturday, Mr. Obama said that small businesses were being “crushed by skyrocketing health care costs.”

“Because they lack the bargaining power that large businesses have and face higher administrative costs per person, small businesses pay up to 18 percent more for the very same health insurance plans — costs that eat into their profits and get passed on to their employees,” Mr. Obama said.

http://www.nytimes.com/2009/07/26/us/26radio.html?_r=1

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July 26, 2009 - Posted by | Federal Government, healthcare | , ,

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