A Small Business Owner in Illinois Discovers He Has to Fire Employees, Cut Salaries or Split His Company in Two to Qualify for Obama Tax Credit

On May 7, 2010, the President promised small business owners that:

“In addition, as part of health reform, 4 million small businesses recently received a postcard in their mailbox telling them that they’re eligible for a health care tax cut this year.  It’s worth perhaps tens of thousands of dollars to each of these companies.  And it will provide welcome relief to small business owners, who too often have to choose between health care and hiring.”

While these tax cuts look great on paper, one small business owner in the President’s home state discovered the postcard was literally too good to be true. 

Charles Arp, who manages Penny Printing Company in Sterling, Illinois, recently wrote a column titled ‘Obamacare’s Broken Promise: One Company’s Experience.’  Mr. Arp wrote:

“My firm would have to reduce its workforce and cut employee wages to benefit from the
newly enacted Patient Protection and Affordable Care Act. Is this what the objective should
be?”

U.S. Senator John Barrasso (R-Wyo.) spoke about this issue on the Senate floor.