The Affordable care act negatively impacts small businesses' tax Essay

The Affordable care act negatively impacts small businesses' tax liability and their ability to expand and hire new employees - Essay Example The act intends to offer all citizens of America a health insurance policy that can be easily affordable. This is in line with the main goal of achieving better health care in the United States. Employer is required to sign and implement the new act. This is supposed to affect companies with 50 or more staff members. The staffs are supposed to be given the health insurance. Failure to adhere to the new rules will see companies getting stiffer penalties. The act comes as a reprieve to the employees but serious issues still arise on the side of employers (Tammy, 2013). These challenges that have led to the delayed implementation of the act include:- 2. Tax Liability. Employers with the threshold of 50 or more staff are legally required to give health coverage to their staff. Failure to adhere to this they are to pay tax penalty which will increase annually. Estimates indicate that in 2014, the penalty will amount to $47.50 per child and $95 per adult or 1 percent of the household income that is taxable. In 2015, the penalty will be $ 162.50 per child and $ 325 per adult or 2 percent of household income that is taxable. In 2016, the penalty will amount to $347.50 per child and $695per adult or 2.5 percent of household income that is taxable. In each case, whichever option is highest will be considered. After 2016, there will be an increase annually in the penalty centered on the increase in living cost (Tammy, 2013). The penalties impacts negatively on small business that might be forced to go through severe losses and even shutdown. 3. Hiring. Research indicate that there will be a less of approximately two million people employed on full time basis in 2017 as compared to the number working in the nonexistence of the new law. Big and small companies are likely to reduce the rate of hiring, the small companies being the most affected. ACA can hasten the deterioration in employment in small business by reducing both the need of

Analyze Research Paper Example | Topics and Well Written Essays - 750 words

Analyze - Research Paper Example According to the article, the US possesses inclusive free-trade agreements with nearly 17 nations comprising both Canada as well as Mexico. The article emphasized that the different service providers that encompass law as well as bank firms to reap maximum benefits from the idea of international trade of the US with other various nations (The New York Times Company, 2013). Government Influence The governmental interventions in global business provide significant implications upon different significant aspects that include employment and inflation among others. From the viewpoint of the aspect of employment, the governments influence global business by encouraging the business procedures of different organizations as well as by generating ample job opportunities. In relation to inflation, the governments influence global business by ensuring that there does not lay any sudden rises especially in the prices of the products (The New York Times Company, 2013). ... order to combat particularly against corruption, terrorism and different cross-border criminal activities like drug smuggling (The Washington Post, 2013). 2. Important aspects of Global Business in relation to Foreign Exchange and Rates Foreign exchange rates are fundamentally regarded as an imperative determinant in the business activity of any nation in the global context. It can broadly be stated with foreign exchange rates, it is possible for a nation to conduct its business transactions nationally as well as internationally by a considerable level. The major significance of foreign exchange rates is that the exchange rates extensively enhance the trade level of a particular nation. There are numerous factors that influence foreign exchange rates by a significant degree. In this connection, the factors comprise dissimilarities in the interest charges, public debt and financial performance among others. In accordance with the reports of a recently published article, it has been vi ewed that Egypt adopts a latest system by which they can purchase as well as sell foreign currencies. The prime objective of the nation i.e. Egypt to introduce a new system of transacting foreign currencies is to provide an active support particularly to the finance related policy makers while facing problem linked with foreign-exchange reserves. The country strongly believed that by introduced such system it can safeguard the reputation of Egypt as a business nation in financial international markets (The Wall Street Journal, 2013). 3. Important aspects of Global Business in relation to International Business Strategy and Country Evaluation and Selection In the context of providing a global strategy for pursuing various business transactions, it has been viewed in a recent article that a