US president Barack Obama touted the immediate benefits small businesses will receive from his healthcare reforms today as he made his second speech this week promoting the sweeping plan to a sceptical public.
Opinion polls show that many voters are unhappy with the healthcare overhaul amid high unemployment and a still-sluggish economy, and could punish Obama's Democratic Party in mid-term congressional elections in November.
In his speech, Obama reiterated his message that the plan is part of his program to boost the economy and employment.
"I want you to know that we are working every day to spur job creation and turn this economy around," he said in prepared remarks. "And that's why we worked so hard over the last year to lift one of the biggest burdens facing middle-class families and small business owners: the crushing cost of healthcare in America."
The 35 per cent tax credit for small businesses, available from the start of 2010, is part of a $940 billion package of changes to the country's $2.5 trillion healthcare industry that represents the largest US social policy shake-up in decades.
The White House said the credit, which rises to 50 per cent of healthcare premiums in 2014 to help offset higher costs, would save small businesses $40 billion by 2019, according to estimates by the non-partisan Congressional Budget Office.
Mr Obama urged Americans to see what benefits they experience from the new law -- a vital achievement for his presidency -- before they judge it, but acknowledged that it is not perfect.
"This reform will not solve every problem with our healthcare system. It will not bring down the cost of healthcare overnight," he said. "We'll have to make some adjustments along the way."
Democrats, who currently control both the House of Representatives and the US Senate, passed the healthcare legislation without a single Republican vote.
Republicans hope they can turn the issue into a vote-winner. Polls show a majority of the country fear the reform will cost too much and invite unwelcome government intrusion into their lives.
"The timing couldn't be worse for a bill that will make it even harder to create private-sector jobs, and harder for small businesses to comply with ... a thicket of new rules," said Senate Republican leader Mitch McConnell.
Mr Obama aimed squarely at insurance companies and rival Republicans in his remarks, praising the healthcare bill's passage as a victory over special interests and misinformation.
"There has been plenty of fear-mongering and overheated rhetoric," he said. "And if you turn on the news, you'll see that those same folks are still shouting about how the world will end because we passed this bill. This is not an exaggeration.
Leaders of the Republican Party have actually been calling the passage of this bill 'Armageddon.'"
A Gallup poll released on Thursday showed registered voters prefer the Republican to the Democratic candidate in their districts by 47 per cent to 44 per cent in the mid-term congressional elections, the first time Republicans have led in 2010 election preferences since Gallup began such weekly tracking last month.
The latest results came after the House passed the healthcare legislation on March 21. Obama later signed it into law.
"The shift toward Republicans raises the possibility that the healthcare bill had a slightly negative impact on the Democrats' political fortunes in the short run," Gallup said in a statement.
Some big US businesses have also started to tally up the financial hit they say they will take because of the healthcare law. Corporate America says the law raises their taxes, but the White House says it merely closes a tax loophole.
Reuters