ACA Title 1, Sec. 1421. Credit for employee health insurance expenses of small businesses: “Bad” – Needs to be better targeted and designed. This provision needs to be better targeted and simplified. It should allow businesses with less that 25 employees to qualify for a tax credit that is limited to 50% of the cost of health plan coverage for all employees. That 50% should decrease by 5% each year until in ten years it reaches 0%. The tax credit should be able to reduce federal withholding and provide a subsidy to small employers that disappears over time. This provision needs to be simple to understand and simple to implement and should provide financial support to small business organizations whether profit-making or non-profit.

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