As Americans weigh the effects the recently passed healthcare reform will have on their medical fees, many in the business world are trying to discern the legislation’s broader economic implications.
The Business & Media Institute reports that Mad Money host Jim Cramer said that the healthcare bill might present uncertainty to entrepreneurs. Cramer believes that paying for the reform will take money away from small business funds that could be used to start a corporation. He also thinks it might lead to higher taxes that will make higher barrier for climbing stock prices and potentially scare off investors.
On the other hand, the Council of Economic Advisors believes the healthcare new system will reduce the cost of providing healthcare for workers, making it easier for small businesses to make new hires and offer medical coverage.
The council also suggests that the reform will bring certain tax incentives for small businesses that might spur entrepreneurial activity and lead to increased business incorporation.
While the consequences of the bill and small business costs are unclear, some things are clear about business incorporation. For one, the practice offers tax credits to company owners that can help alleviate any tax burdens that might come from the new legislation. Moreover, business formation is needed for a healthy economy – healthcare aside.
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