Obama Proposes 50 Percent Health Insurance Tax Credit For Small Businesses

Obama Proposes 50 Percent Health Insurance Tax Credit For Small Businesses in Politics and Legislation

Illinois Senator Barack Obama, the Democratic presidential candidate, recently announced a plan to offer small businesses a significant tax credit if they offer their employees group health insurance.

The tax credit would refund small business employers up to 50 percent of workers premiums, reported an Associated Press article this weekend.

This plan would cost an estimated $6 billion per year. Critics of the proposal say it’s too expensive and doesn’t provide enough details.

But small businesses are most vulnerable to the high costs of health care, and many simply cannot afford to provide health insurance benefits.

Senator Obama proposed his plan based on a proposal by New York Senator Hillary Clinton, a former presidential candidate.

“I’m announcing my plan to provide real relief for small business owners crushed by rising costs, an idea championed by my friend Hillary Clinton, who’s been leading the way in our battle to insure every American,” said Senator Obama.

Republican presidential candidate, Arizona Senator John McCain, also has proposed a plan to offer health insurance tax credits. But Senator McCain’s plan offers the tax credits for individuals rather than businesses.

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