The National Federation of Independent Business, which represents small business, says the proposal will burden employers and threaten broader economic recovery and that few businesses will qualify for the tax credit.
The administration acknowledges that health-care costs strain companies but says it's only fair that larger employers--those with at least 50 employees--share the responsibility for ensuring workers have health-care coverage.
Less than half of businesses with three to nine workers offered health insurance in 2009, according to the Kaiser Family Foundation. That figure climbed above 70% for companies with 10 to 24 employees and to nearly 90% for those with 25 to 49 workers.
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