One more reason not to grow

The Washington Post reports that Obamacare gives small businesses one more reason not to hire more people. While the law eases its harsh penalties when it comes to businesses with fewer than 50 employees, regulators are adding up all the employees of separate businesses that share an owner.

The Post reports:

“The aggregation rules pose an addition compliance headache for a large number of small business owners. In fact, roughly four out of 10 small firms with at least 20 employees are run by employers who own at least 10 percent of at least one other company, according to research by the National Federation of Independent Business.

“Due to the complicated nature of the rules, many of those firms will be forced to hire a tax attorney to determine their size status under the law, according to Debbie Walker, a Washington accountant who testified at the hearing.

“[Texas small business owner Ellis] Winstanley estimates that could cost him upwards of $10,000 — and that’s just for the legal counseling. Should he indeed be forced to expand his health care plan to every one of his companies (he already offers care at some firms), he says his current business model may no longer work, and he and his brother will think twice about adding new restaurants.”

So not only is the Affordable Care Act making care less affordable, it may be costing some unemployed people a chance at a job.

(Hat tip to RightWisconsin)