SOUTHGATE ? It might be tempting for small business owners to abandon plans to offer health insurance to workers, but a lobbyist warned them to carefully consider the decision.
Rob Fowler, president and chief executive officer of the Small Business Association of Michigan, addressed the Southern Wayne County Regional Chamber?s Legislative Forum on Monday and warned members of the chamber to think twice when President Barack Obama?s Patient Protection and Affordable Care Act is fully implemented in 2014.
?You could be unwise to drop insurance and send your employees to the exchange,? he said. ?It might make you a more attractive employer if you provide health insurance.?
In a little more than a year, businesses with more than 50 employees must provide insurance or pay a penalty. Smaller businesses with fewer than 25 full-time employees can qualify for tax breaks if they pay half their employees? premiums.
Fowler?s group opposed the act, but after the U.S. Supreme Court ruled it constitutional last summer and voters re-elected Obama earlier this month, he said small businesses must be ready.
?It?s an interesting time for small businesses,? he said. ?There?s going to be a new demand for health insurance by employees.?
States or the federal government will create exchanges for individuals and small businesses to shop for insurance plans and anyone that can afford it will be compelled to purchase health insurance. Individuals that fail to do so will pay a penalty and low-income buyers could qualify for subsidies to help them purchase plans.
Fowler, who also serves on boards of the state Health Insurance Access Advisory Council and Housing Development Authority, also wondered out loud if it?s time to seek legislation to make Michigan a right-to-work state.
Proposal 2, an effort by labor unions to amend the state Constitution to ensure collective bargaining and other matters, failed at the polls and Fowler said he believes there are enough votes in the state House and Senate to get such legislation passed.
Gov. Rick Snyder has not taken a stance on the issue, but Fowler said now might be the time to seriously consider it. Continued...
?We?ve always waited for the stars to align and this could be the time,? he said.
Right to work laws abandon the idea of a closed shop, where joining a union local is a condition of employment. Almost half the states have right to work laws. Indiana is the only one in the Midwest that has such legislation.
Business groups have argued closed shops and prevailing wage stipulations inhibit economic growth in the state. Prevailing wage laws compel contractors to pay the prevailing union wage if a project is completed with public funding.
As expected, Fowler said he hopes the state considers abolishing the practice.
He spent most of his time reviewing the results of the general election and said, for the most part, not much has changed in Michigan. The Republican party maintained its control of the Legislature and Fowler took that as support for the change in the state?s small business tax structure.
?I think there?s a tangible turnaround and people are optimistic,? he said. ?The message said it?s working.
?A tax cut for small business is beginning to generate job creation by small businesses.?
By Fowler?s count, the state has added 12,742 new small business jobs since the start of 2012.
The chamber won?t host a Legislative Forum next month but will meet for its annual Salute to Government Officials on Dec. 6 at the Farbman Group, 16333 Trenton Road, Southgate. Tickets are $30 per person and can be reserved by calling 1-734-284-6000 or visiting swcrc.com.
A speaker for the January forum will be announced in coming weeks. Continued...
Contact Scott Held at 1-734-246-0865 or sheld@heritage.com. Follow him on Facebook and @ScottHeld45 on Twitter.
Source: http://www.thenewsherald.com/articles/2012/11/20/news/doc50aba5bddb82a514260213.txt
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