❌ HB133
Authorize tax credit - small employers with health reimbursement
Current Status: In Senate Committee (Ways and Means)
Summary
The bill authorizes a nonrefundable income tax credit for small employers that provide an individual coverage health reimbursement arrangement to their employees, specifically targeting employers with 1 to 50 employees. The credit is set at $400 per employee covered and is applicable for taxable years ending on or after the effective date of the section.
Rationale
The bill introduces a government tax credit that incentivizes specific employer behaviors, which may conflict with the Libertarian principles of minimal government intervention in economic matters and free market operations. Both the LP and LPO platforms emphasize limited government involvement in employment and compensation agreements.
Risks and Concerns
- Increases government intervention in the labor market
- Encourages dependency on government tax credits
- May lead to cronyism or favoritism in tax policy