Fiscal Cliff

Baum: The Real Cost of the 'Fiscal Cliff'

Peter Baum | CFO & COO, Essex Manufacturing

It is with great frustration as a tax paying citizen, private business owner and employer of 80 people between the USA and Hong Kong that I listen to the continued FALSE CLAIMS in the rhetoric emanating from Washington in regards to tax policy.

Don Carstens | Brand X Pictures | Getty Images

We pay taxes, health care and retirement benefits in both Hong Kong and the USA for our employees in accordance with all laws. (Read More: What is the 'Fiscal Cliff'?)

CNBC's Gary Kaminsky recently did a piece on FSA for employees. Thank goodness someone recognized the harm caused to our employees by the Affordable Health Care Act! As a Sub-Chapter "S" Corporation shareholder I am not eligible for FSA, but my employees went from a pre-tax maximum deposit of $6,500 to a legal maximum of $2,500. Any employee with children is devastated by this change! We put in FSA to offset the burden of higher deductibles so as to keep benefits, yet manage health care costs for our company and employees.