Companies Reluctant to Hire Because of Politics

CNBC reported today that companies, especially small business owners, are reluctant to hire because of uncertainty of what the current government will do about taxes and health care.  Associations representing small businesses are urging the government to consider the small businesses in their tax policy and health care reform.

The tax cuts instituted by the George W. Bush administration is due to expire in 2010.  For many small businesses, the current tax system the Bush administration established is the only tax system they have known.  They are unsure if and when the Obama administration will raise income and business taxes.  And even when the new tax policies are passed, small business owners are unsure how it will affect them and their business.

In addition, small business owners are holding their breath waiting for the health care bill to pass and wondering how it will affect their business as well.  The Obama administration has repeatedly said that it won't affect those who currently have health insurance and that it wasn't a tax on the business class.  Most business owners are not sure of this and are waiting to see how the new health care reform bill will affect their business.  You can read the article and watch the interviews on CNBC.