A nationwide survey of business executives indicates that most U.S. employers, at least for now, are unlikely to stop offering health care benefits in the wake of the landmark federal health care reform law.
The online survey of nearly 3,700 executives, conducted by Crain Communications Inc. publications Workforce Management and Business Insurance, found that 52.5 percent strongly disagreed with the statement that it would be better for their organizations to stop offering health care benefits and pay a fine under the new law. An additional 15.3 percent somewhat disagreed with the notion of dropping coverage and paying the fine. Eighteen percent somewhat agreed with the idea of dropping coverage; only 14.1 percent strongly believe their organizations would be better off in dropping benefits.
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Among the largest employers—those with 25,000 or more workers—64.9 percent strongly disagreed with the statement that their organizations would be better off dropping health care benefits. An additional 12.4 percent somewhat disagreed, while 14.2 percent somewhat agreed and 8.4 percent strongly agreed.
The Obama administration is developing a major initiative to tackle the economic and political problem of unemployment by getting federal bailout funds into the hands of small businesses.
The proposal involves spinning off a new entity from the Troubled Assets Relief Program that could give banks access to the government money without restrictions, such as limits on executive pay, as long as they use it to make loans to small businesses. But officials are not yet certain whether carving the program out of the TARP would be the best way to lure banks to participate in small business lending, sources familiar with the matter said on condition of anonymity because the plans were not final.
As an alternative, officials are prepared to ask Congress to modify the TARP itself, easing the pay limits and other restrictions that would be imposed on small business lenders taking the money, the sources said.
I posted this a few days ago. I continue to hear the same thing over and over again, that there may be upticks, but we're in it for the longer haul. Here's the latest:
As the effects of the economic collapse began pouring down Main Street, the government last year was left holding a record $2.1 billion in write-offs of small business loans it had guaranteed. Officials expect the number of defaults to rise as the nation continues to climb out of the recession.
Records obtained under the federal Freedom of Information Act show the public is paying to offset bank losses on small business loans across the country, from a convenience store in the tiny Canadian border town of Houlton, Maine, to a graphic arts design company on the island of Hawaii, more than 5,000 miles away.
Despite having loans written off, little companies such as Caffe Sportivo, an espresso shop and small gym in Redwood City, Calif., are barely scraping by. [...]
It's a sign that even as record profits re-emerge on Wall Street, thanks to massive government loans and guarantees for banks deemed too big to fail, the pain on Main Street is as profound as it's been in half a century. The companies that were not too big to fail are failing.
Their plight is a shift from previous recessions when small business bounced back ahead of big employers, said Todd McCracken, president of the lobby group National Small Business Association.
"This could be the first economic recovery we've seen in a long time that hits small business the hardest the longest," he said.
As you may know by now, my friend and colleague Jim Alger has a political radio show, Common Sense, that features My Tweet Spots segments by yours truly. Well, today, Jim had some time to do a little digging, so he called Mitch McConnell's office to discuss health care reform. He managed to entice Don Stewart into a conversation.
Stewart, or “Stew,” as he likes to be called, is widely considered one of the top communications directors in the Senate. He is a workaholic, who sends e-mails and press releases throughout the night and knows how to promote his boss’s agenda.
Stewart joined Senate Minority Leader Mitch McConnell’s (R-Ky.) office after the 2006 elections in an attempt by McConnell, who has often shied away from the spotlight, to bolster his communications office after becoming the Republican Senate leader. Stewart was a key part of Sen. McConnell’s plan to build a strategic communications center to help Republicans redefine and promote their message starting at the beginning of the 110th Congress. [...]
Stewart’s game is definitely media and message control, and he became one of Washington’s best and most aggressive communication directors while working for Cornyn. [...]
Stewart has worked in McConnell’s office since the start of 2007. But his job puts him in direct contact with other members of the Senate Republican leadership, including aides to Minority Whip Jon Kyl (R-Ariz.) and Senate GOP Conference Chairman Lamar Alexander (R-Tenn.). In particular, Stewart has strong Texas connections. Before working for McConnell, he spent three years as communications director for Sen. John Cornyn (R-Texas) and three years in the press office of Sen. Phil Gramm (R-Texas).
In McConnell’s office, Stewart has worked alongside Chief of Staff Kyle Simmons, Simmons’ deputy Sharon Soderstrom and Press Secretary Jennifer Morris.
Jim Alger seemed to trip up the Director of Communications for the Senate Minority Leader in about two minutes. "Stew" had no prep, and appeared to admit that the Democratic plan for a public option is good for small business by saving them money. This from the party that wraps themselves in small business regularly, from tax cuts to fighting unions. According to Jim, Stew seems willing to abandon their constituency on health care.
Listen carefully and see if you agree. Did Senator Mitch McConnell's own guy sell out small business? He sure got off the phone quickly at the end. (Trouble streaming? Here's the YouTube link)
UPDATE: He also admits that Barack Obama's plan does not create a government mandate for public insurance, contrary to all the spin. Check it out.
U.S. President Barack Obama will announce steps on Monday to make it easier for small business owners to borrow money, using $730 million in stimulus funds to cut lending fees, boost loan guarantees and expand other programs, officials said. [...]
The Obama administration believes small businesses, which accounted for about 70 percent of new job growth over the past 10 years, will ultimately drive the recovery from the current recession, one of worst in decades, a U.S. official said. [...]
Obama and Treasury Secretary Timothy Geithner will announce a plan to increase federal guarantees under the SBA's most widely used loan program, an official said. [...]
The administration also plans eliminate a number of borrower and lender fees on loans originated through its main loan program and a program to encourage long-term borrowing for major fixed assets like land and buildings.
As part of his financial stability plan in February, Geithner said the administration would boost secondary lending markets that buy up loans and would encourage small business lending by targeting markets that buy small business loans.
McCain has repeatedly claimed that Obama would raise tax rates for 23 million small-business owners. It's a false and preposterously inflated figure.
We find that the overwhelming majority of those small-business owners would see no increase, because they earn too little to be affected. Obama's tax proposal would raise rates only on couples making more than $250,000 or singles earning more than $200,000.
McCain argues that Obama's proposed increase is a job-killer. He has a point. It's true that increasing taxes on those at the top would leave them less money for other purposes, including investment and hiring in the case of business owners. But the number of business owners who would see their rates go up would be only a small fraction of what McCain says. Many would see their taxes go down.
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