Obamacare Makes One Small Business Into Many Tiny Ones

The IRS came out with the regulations for the small-business health-care tax credit. Free money from the .gov, for up to 35% of your employees’ health-care premiums for the next few years (six, I think). Catch is, it’s phased out if you have more than 10 employees or pay them more than an average wage of $25k.

So of course I’m looking into whether or not it makes sense to spin off a few departments into their own ten-person companies — to which we’d outsource their former in-house function. Of course that would be counted as creating new small businesses, hooray!

Under Obamacare, entropy = growth.

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