Bill Clinton: “I am introducing the Small Employer Tax Assistance for Health Care Act of 2003, SETAH, a bill to provide tax subsidy to…”

“I am introducing the Small Employer Tax Assistance for Health Care Act of 2003, SETAH, a bill to provide tax subsidy to small employers to help them provide health coverage to their workers. The problem of the uninsured is a problem of working families, but 7 out of 10 workers without coverage are not even offered coverage through their employers. This bill provides assistance and incentives for those employers who are least likely and least able to afford coverage for their workers, small, low-wage firms. Statistics show that small firms are half as likely to offer coverage as large firms, while the offer rate for small low-wage firms is cut 50 percent further, compared to small high-wage firms. This legislation will offer a significant tax break to those businesses in order to subsidize their purchase of health insurance. The credit is designed sensibly, so that rates adjust slowly as firm size and average wage increase. Tax credits can unintentionally penalize firms that grow beyond the eligibility limitation. For instance, a tax credit for firms smaller than 20 means a firm's decision to add the 21st worker could add thousands to their tax bill. Tax credits should help businesses and their workers prosper, and not unintentionally discourage business growth.”