How the Affordable Health Care Act Gets in the Way of Small Business

DALLAS - Oct. 11, 2013 - PRLog -- Many economists and pundits point to small businesses as a critical component of the U.S. economic revival. After all, the small business sector is the largest creator of jobs in the U.S. economy. However, Washington doesn’t seem to understand this.

There are many uncertainties that entrepreneurs and small business owners are faced with, such as the difficulty raising capital or planning for taxes, which has kept many of them from spending, investing and hiring. Unemployment is a critical issue with our economy. While the official unemployment rate is 7.3 percent as of August 2013, the U-6 unemployment rate stands at 13.7 percent. This statistic covers those who work part time or who are currently neither working nor looking for work but indicate that they are available for a job. In other words, it includes that Americans who have given up looking for work.  Yet, Washington keeps producing legislation that gets in the way of small businesses owners and their efforts to create jobs.

The Affordable Health Care Act is one example.  There is still much uncertainty with how much this will impact the operations of small businesses in the long term, but one thing is certain, health care costs are going up fast. There is no reason to believe that this health care reform legislation will do anything more than increase the cost of providing health care to small businesses and their employees.

The result of health care reform and the escalating cost of federal compliance will be catastrophic. Too many entrepreneurs will give up in desperation, deciding not to even bother to start a business. When added to the difficulty raising capital and the unclear tax situation, the cost and burden of government interference will outweigh the rewards of being your own boss and providing a living for your employees. The result will be fewer small businesses and thus fewer jobs.

Since the election, some Congressional leaders have said that small businesses need relief from government inference. If the environment for small business continues to be marginal, there will be a long-term cost. The United States won’t be as competitive in the global marketplace and Americans won’t have the quality of life they’ve had in previous generations. Indeed, the American way of life will change for the worse. Is that what Washington intended?

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