Business & Economy
Federal health law may cost small businesses
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By XINJUAN DENG
Capital News Service
LANSING – Some small businesses say they will be hurt by a “hidden” tax under the two-year-old federal health overhaul. U.S. Rep. Gary Peters, D-Bloomfield Township, said the act provides $40 billion in tax credits during the next decade to help small businesses pay health insurance premiums.
The law lowers the cost of health care, Peters said, which saves small businesses money. However, some small business people disagree. Scott Lyon, vice president for small business services at the Small Business Association of Michigan, said the federal law is becoming a problem for small businesses. “The problem is the cost: the act is doing very little to stabilize the lower cost of insurance,” Lyon said.