Impact of the PPACA on Texas Business

Under the health care law, the employer mandate creates such a barrier at the 50 employee threshold that it is unlikely that most businesses will seek expansion to that size after 2014. The rising cost of business driven by compliance, employee coverage, and penalties will force medium size business to either merge with one another to gain economies of scale, sell their business to larger competitors, or shut down completely. The future of Texas business under the health care law is one in which small businesses stay small, large businesses stay large, and growth is muted.

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