Dont have immediate access to the paper. I agree it is a hurdle to overcome, but I don't really know how many startups ultimately don't get started or fail because of it especially if you look at the number of startups and entrepreneurs consistently popping up in the US compared to some countries where the government provides universal healthcare.
Is employer-based health insurance a barrier to entrepreneurship?
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Re: Is employer-based health insurance a barrier to entrepreneurship?
#12I remember an episode where this american life explained why health insurance came to be like it is. I was specifically interested in the fact that they said during WWII wages where not allowed to increase, so the only things that employers could increase were benefits. This was the biggest factor in making Health Insurance employer-based.
Also having it be a tax write-off. If an employee were to buy it on their own it would be with after tax dollars and thus much more costly. (That's even discounting group rate discounts.)
Health insurance premiums are tax deductible.
Re: Is employer-based health insurance a barrier to entrepreneurship?
#13This grumbling keeps coming up here, so I just have to ask: how feasible is it for a young American like me to just pick up and leave for a place that does have a sane health care system, and work on whatever I want? As far as I can tell, these places tend to have fairly steep immigration/visa hurdles to overcome, usually involving some kind of employer sponsorship (presumably to deter freeloaders?). If anyone here h…
I haven't done so, but have done a fair bit of investigation. The most technically correct answer I can give is that it depends on where you're going and how you leave things in the US.
First, where you're going. You obviously want to go somewhere with better healthcare than the U.S., which isn't all that difficult to find. The ? becomes what your obligations will be as a somewhat permanent resident and how you can maintain that status legally. That's really going to be location dependent, but you should look and look hard before you leap, because the consequences could be unpleasant if you screw up. I believe there are agencies that cater to potential expats like yourself, and if you're really serious about this you should talk to one of them to make sure you don't step on any landmines in the process.
As for the second ?, The US assumes that you continue to owe US taxes as long as you maintain your citizenship, and they make it difficult to give that up. I don't know exact figures, but you are exempt up to something like $78000 of income and are allowed to write any foreign taxes you pay on that off, but as long as you are a US citizen you're on the hook. If you move to Singapore and strike it rich, unless you pay the IRS you could have extradition hearings in your future. I'm pretty sure the deficient US health care system would be pretty low on your list of worries in that case. Again, this is the sort of thing a professional could tell you more about, but this is definitely out there. I don't want to advocate giving up your citizenship lightly, but know that the US is unique in this sort of taxation and making a fortune abroad without paying US taxes would almost certainly be viewed as some sort of tax evasion if you didn't proceed very carefully.
Re: Is employer-based health insurance a barrier to entrepreneurship?
#14Answer: Hell yes. Self-insurance is absurdly expensive while group insurance outside of an employer or credit union is harder to find than a Republican with a conscience. The lie that "Obama-Care kills small businesses and/or jobs" is a smokescreen for the truth: Healthcare reform would free employees from indentured health care servitude and allow small businesses to hire more competitively, creating more jobs.
You're right that employer-based health insurance is idiotic and economically destructive (conservative and libertarian analysts have been saying so for decades), but your blatant partisanship is not helpful. In 2008 John McCain's platform included a migration away from employer coverage by treating benefits as taxable income, while simultaneously granting a refundable tax credit for the purchase of individual insurance. Obama and the Democrats instantly demagogued that as "taking away your existing coverage" and defended the employer-based system.
Re: Is employer-based health insurance a barrier to entrepreneurship?
#15I remember an episode where this american life explained why health insurance came to be like it is. I was specifically interested in the fact that they said during WWII wages where not allowed to increase, so the only things that employers could increase were benefits. This was the biggest factor in making Health Insurance employer-based.
Also having it be a tax write-off. If an employee were to buy it on their own it would be with after tax dollars and thus much more costly. (That's even discounting group rate discounts.)
Also, employers expense health insurance premiums and pay no payroll taxes on the contribution as they would on normal wages.
Re: Is employer-based health insurance a barrier to entrepreneurship?
#16Earlier quoted context omitted.
Also having it be a tax write-off. If an employee were to buy it on their own it would be with after tax dollars and thus much more costly. (That's even discounting group rate discounts.)
Health insurance premiums are tax deductible.
Not if you have an employer. The deduction is for self employed people.
Re: Is employer-based health insurance a barrier to entrepreneurship?
#17Answer: Hell yes. Self-insurance is absurdly expensive while group insurance outside of an employer or credit union is harder to find than a Republican with a conscience. The lie that "Obama-Care kills small businesses and/or jobs" is a smokescreen for the truth: Healthcare reform would free employees from indentured health care servitude and allow small businesses to hire more competitively, creating more jobs.
Okay, I know hating on Republicans is fun, but is that really necessary? Why sow the seeds of discord?
Re: Is employer-based health insurance a barrier to entrepreneurship?
#18This grumbling keeps coming up here, so I just have to ask: how feasible is it for a young American like me to just pick up and leave for a place that does have a sane health care system, and work on whatever I want? As far as I can tell, these places tend to have fairly steep immigration/visa hurdles to overcome, usually involving some kind of employer sponsorship (presumably to deter freeloaders?). If anyone here h…
I haven't done so, but have done a fair bit of investigation. The most technically correct answer I can give is that it depends on where you're going and how you leave things in the US. First, where you're going. You obviously want to go somewhere with better healthcare than the U.S., which isn't all that difficult to find. The ? becomes what your obligations will be as a somewhat permanent resident and how you can m…
$92,900 in 2011
http://www.irs.gov/businesses/small/international/article/0,...
Re: Is employer-based health insurance a barrier to entrepreneurship?
#19Yes, but government ran healthcare is not the answer...
Re: Is employer-based health insurance a barrier to entrepreneurship?
#20Answer: Hell yes. Self-insurance is absurdly expensive while group insurance outside of an employer or credit union is harder to find than a Republican with a conscience. The lie that "Obama-Care kills small businesses and/or jobs" is a smokescreen for the truth: Healthcare reform would free employees from indentured health care servitude and allow small businesses to hire more competitively, creating more jobs.
The Republicans have been trying to kill employer based health care forever... it's the unions responsible for it.