No wonder California Republicans are seeking to unravel the Democrats’ health care overhaul. Not only does it hurt small business, but it imposes additional costs on larger businesses as well.
Last week, the White Castle hamburger chain said it would lose 55 percent of its annual net income because of a provision in the law. Starting in 2014, the law will levy a $3,000-per-employee penalty on businesses with workers who pay more than 9.5 percent of their income in premiums for insurance their company provides. Herger said White Castle will be forced to cut jobs.
Lungren’s bill would repeal a provision that requires any business that purchases more than $600 of goods or services from another business to file a 1099 tax form to the Internal Revenue Service.
“Large corporations have whole divisions to handle such transaction paperwork, but for a small business – which doesn’t have the manpower – this is yet another brick on their back,” he said.
Lungren said the law will hurt small businesses in particular because companies will want to deal with larger chains as a way to minimize the number of 1099 forms they must file. He said the provision was tucked into the law at the last minute.
If White Castle is forced to cut jobs, it looks like there will be a longer wait to buy those tasty little burgers. Not only will we be lining up for health care, but we’ll be lining up for heartburn as well.