Health Care Reform - A Small Business and Vending Operator Perspective

Introduction - The Health Care Reform Bill, H.R.their employees, they would qualify for a tax
3590credit up to 35% of your premiums, and by 2014,
The health care reform bill, H.R. 3590, is a highlythat number could be increased to 50%. This tax
contested item for debate, even with its passingcredit is not available for sole proprietors though,
earlier this week. We have seen the 'ups andwhich is one caveat.
downs' of thought on both sides of the fence,As far as personal coverage goes, by 2014, you
from the partisan tactics of Washington, to thewill be required to opt-in for health insurance, or
common opinions of middle-class women and men.also face a fine. However, if more than 8% of
We have seen response in all avenues of media,your income goes to the cheapest available plan,
whether it be television, radio or newspaper. Weyou will not face a fine.
have seen millions of responses worldwide to theFor the taxpayer who makes over $200,000
adaptation of this bill, and all of the follies anddollars individually or $250,000 dollars as a family,
fancies that come with it. However, the ease isthe Medicare tax rate will be augmented from a
unwary, and the mood a bit shaky, as we all pass1.45% to 2.35% tax rate. If a small business
through our collective American conscious andowner receives capital gains or other income
opinions on the various reasons why we are forbased on interest (such as dividends), there could
or against it.be a larger hike to their Medicaid tax rate as well.
This change is not a mere reflection of all thingsFor The Vending Machine Operator/Business
considered, but a much deeper concern. It is oneFor the vending machine operator especially, this
idea that rests on the laurels of all Americannew legislation introduces the necessity for the
people, from the heartland to big city. Essentially,owner to include nutritional labeling on their vending
our perspectives are being noted in ourmachines, if they have 20 or more of them.
democratic efforts to speak what we think, andOpinion is divided between the change, but one
to be resolute in our affirmations on the subject.thing is certain. For the small to medium vending
With that being said, one such industry that ismachine business owner, it will take time and
undergoing change in lieu of this bill is the vendingmoney to implement.
machine industry.Particularly, it will cost money to print and attach
Summarizing Some Elements of The Billthe nutritional labels to the machines, and say if it
To get a firmer grasp on the bill itself, here is anwas $10 dollars per label and you had 200
introduction to the generalities of it. The nationalmachines, that would be $2,000 dollars overall. For
health care reform bill, or the "Patient Protectiona small to medium sized business that still is a lot
and Affordable Care Act" is a 2,393 page bill (asof money.
of right now) that reflects momentous changesAlso, if product does change in the machine the
to the health care system, and as well to manyowner will have to keep the label up-to-date,
other facilities that relate to precursors of thewhich means a new label will have to be made,
health care system and individual health.and more money will go out of the pockets of
First, it must be noted that a vending machinethe vending machine business owners.
business operator is classified as an entrepreneur.Essentially what this debate centers on is small
In addition, under the new health care bill, therebusiness versus big business. In general, a big
are options for small business professionals andbusiness can incur the costs associated with
entrepreneurs. If you classify as beinglabeling the vending machines at their locations,
self-employed, as most entrepreneurs are, bybut the real burden could potentially be felt by
2014 you may qualify to receive governmentsmaller sized business owners.
subsidies or Medicaid. As well, preexistingFor The Future
conditions are thrown out, and you cannot beTax burden could be felt over several different
denied insurance for them.areas in the future for business owners. One such
For The Small Business Ownerbeing the so-called "soda tax" which is reported as
There are some concerns however. Particularly,being around $0.03 cents for every soda sale. For
the caps to insurance policies are not hard coded,the soda tax, consensus points to factors such as
meaning that insurance premiums by 2014 willthe relationship between full-calorie sodas and
most likely rise considerably from insuranceobesity, and a root solution would be the tax. The
companies upping the rates.tax is seen as a deterrent for people making
For small business owners, if you have 50 orunhealthy choices, and also a revenue generator
more employees, you are required to providefor tax income. However, the future is uncertain
health care to them, under the reform bill. If youfor the soda tax, but it could become a reality
do not, you will be faced with a fine. How muchwithin the next 5 years if enough proponents get
this fine is for is up to debate, but one thing isbehind the idea.
certain, you could be penalized for the aboveAs consensus still shifts from the various arguing
mentioned.points of the bill, over the "pros and cons" and
If you are a small business owner with less thanindividual merits of this legislation, one thing is
50 employees, you will not be required to providecertain. The small business owner will face
this mandatory health care opt-in.different challenges over the next few years, as
Small business owners could potentially see taxwell adaptations that could potentially be seen, in
credits for 2010 and beyond. If the business hasthe face of all this change.
fewer than 25 employees, and it pays at- Senate Considers Federal Tax On Soda.
minimum 50% of the health care premiums for