How would tax deductions for health insurance help start up small businesses?
There are two ways in which health insurance reform would help small businesses. First, many people are unwilling to try to start a small business because that would mean giving up the only insurance they can get, which is through their job. If there were a public option they could buy into, it would be much more likely that they would try to start one in the first place. This option would also be available to their employees, relieving them of the burden of trying to provide it for them. If no public option is included in the reform, then things become much more difficult for the employers/employees. Even with a cooperative, the cost of providing insurance for all employees will probably be prohibitive for the first five years of a new company. So some kind of subsidy would be required. And just like with those who imply that a tax credit would enable individuals to buy insurance, it won’t work for small businesses either. There would need to be a direct subsidy. This is how small bus
