Small business hide the (tax) sausage?

[samclem]

Would this also encourage a business with 50 employees to hire self-employed contractors? They stay under the 51 count, and the self-employed can get a deal on their subsidy?

Right. Or not even self-employed. If I ran a cleaning service and had 45 employees, I'd be interested in geting the next 10 folks from an outside labor "temp" source. So, establishing 49 person temp-help labor pools would seem to be a good line of business (all taking advantage of taxpayer-funded compensation subsidies).
Or, just be a "matchmaker" between businesses who need more workers and self-employed people taking advantage of this small business health care tax credit. Between the tax credit, solo 401k, and IRAs, it would be possible to have a fair amount of income before paying any tax. Just playing by the rules as written.

 

[samclem]

What has been missing in a lot of cases is access to stuff like healthcare.

There's no doubt that increased labor mobility will be a net plus for the national economy and for workers. The issue will be the costs incurred by doing it in the way it is being done.

 

[brewer12345]

There's no doubt that increased labor mobility will be a net plus for the national economy and for workers. The issue will be the costs incurred by doing it in the way it is being done.

Personally, I would have much rather seen the US move to a single payor system like the bulk of the rest of the developed world. But wish in one hand and crap in the other and see which one fills up first. We have what we have, so make the most of it.

 

[SunsetSail]

For a small reduction in TI you could have her hire the kids to 'help' with work. The limit would depend on what else you have set up for them and kiddie tax concerns. The payment to the kids could go to a 529 or a Coverdell to offset what you might pay for later in tuition depending on your philosophy. Alternatively, the kids could contribute their earnings to Roth IRAs - it keeps taxes low, but then again no $ in your hands.