By Jay Heflin - 06/02/10 01:38 PM EDT
Sen. Chuck Grassley (R-Iowa) criticized the Obama administration and Democratic leaders in Congress for touting the COBRA subsidy as a special tax incentive for small businesses when it actually benefits former employees who no longer receive financial aid from employers for health coverage.
"[The] IRS is telling small business that the government subsidy provided to former employees electing COBRA health coverage is a 'special tax incentive for small business," Grassley said in prepared remarks. "This is a complete mischaracterization."
Grassley is the ranking member on the Senate Finance Committee and argues CORBA aids former employees by subsidizing their cost for health coverage and not the company that used to employ them.
"A small business gets no benefit," Grassley said, adding, "The administration should be honest with small business."