Poll: Ala. Small Firms Back Riley’s Health Insurance Tax Break

Ninety percent of small business owners responding to a poll taken by the National Federation of Independent Business in Alabama support providing tax incentives for small businesses to provide health insurance for their employees, a proposal that Gov. Bob Riley will include in his legislative agenda this year.

About 25 NFIB members met with Governor Riley in Montgomery last week to share the poll results with him.

“Small business owners in Alabama are struggling to provide affordable health insurance to their employees and need immediate relief,” NFIB/Alabama State Director Rosemary Elebash said. “The health-care impasse in Washington, D.C. is frustrating to NFIB’s small business members, who are looking to Montgomery for practical solutions that help their families and employees, while keeping them competitive with big business.”

Riley’s proposal would permit Alabama companies with 25 or fewer employees to deduct twice the amount they pay for health insurance premiums from their state income tax.

In order to encourage the employees of these small businesses to participate in their employer’s health insurance plan, Riley’s proposal will let employees deduct twice the amount they contribute toward their health insurance premiums from their income taxes.

Companies with 25 or fewer employees represent 90 of all businesses in Alabama.

“We can increase the number of Alabamians with health insurance while at the same time help small businesses that are struggling to provide health care coverage to their employees,” Governor Riley said. “By helping our small businesses, we keep our economy growing and bring even more revenue into the education trust fund.”

Source: Office of the Governor, State of Alabama