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The Chambers of Magnolia Legislative Alliance, a combined effort of the Magnolia Area Chamber of Commerce and the Magnolia Parkway Chamber of Commerce, held a luncheon Sept. 20, where members learned about Obamacare’s effects on small businesses.

Speaking to the group were Kelly Shea, a human resources and employee relations specialist and Gina Clark, a Magnolia certified public accountant.

Members were shocked by some of the things they heard.

Many of the regulations apply to businesses with more than 50 employees, such as the $2,000 penalty for not offering insurance to employees, which Shea said could have some consequences.

‘This will keep a lot of people from going over 50 employees,” she said.

What Shea said she is most concerned with are smaller insurance companies being bought up by the big conglomerates, which has happened before.

“We used to have a lot of smaller companies that would go in and underbid the bigger companies, but their premiums collected were not enough to offset their costs,” Shea said. “So when the bigger companies bought them out, they had all this bad business, so they had to raise everyones premiums by 20 or so percent.”

She is afraid the new exchanges will cause the same scenario, thereby pricing small businesses out of the market.

“If you are with an A-rated company now, I would advise you to stay with it until we see how this plays out,” she said. “There’s going to be a lot of fighting and a lot of court cases as more of this rolls out.”

Another item rolling out is companies with more than 250 employees have to show how much they paid in health care benefits for each employee on their W-2 form. Shea said that is a sign of a future tax on benefits.

“It’s not taxed yet, but it’s coming,” she said.

Clark said the tax implications are huge with the new law.

She said medical costs must now exceed 10 percent of your gross income before someone can deduct them for tax purposes. Previously that rate was 7.5 percent.

"If you are a majority owner of several companies, they will add them all together to come up with your employee count,” Clark said, adding that if that total reaches 51, the combined companies are subject to the $2,000 fine or to carry insurance coverage. They are required to cover at least 60 percent of the cost of health care for the employee.

“If the employees share of the cost (for individual coverage, not including dependants) exceeds 9.5 percent of household income, the employer is required to pay up to 9.5 percent of household income if that amount is more than 60 percent of health care costs,” Shea added.

Clark said that can open up huge disclosure and privacy issues as well.

“You will have to disclose that you have a spouse and what your household income is to your employer now,” she said. “You never have had to disclose that type of information before.”

Both Shea and Clark agreed that this aspect of the law could have huge ramifications, causing married people to be at a disadvantage when competing with single people for jobs.

Clark also told the group that there will be a new surtax added to the Medicare tax of 0.9 percent for anyone making $250,000 or more in combined household income, as well as a new 3.6 percent surtax on investment income. This investment income tax could effect many retirees living off of investments, including those in the middle class.

Shea said that she had a feeling that Obamacare will not be repealed next year, even if Mitt Romney becomes President, because to avoid a filibuster in the U.S. Senate would require 60 Republicans to be elected, or to find enough Democrats to support a full repeal.

“The way things are going, I don’t think that will happen, at least not in the senate,” she said.

The Magnolia Area Chamber of Commerce (MACC) is taking back-to-school to heart this fall, by launching new marketing and promotional programs. MACC Chairman Barry Tate of Edward Jones said the group is striving to better serve its membership.

"We are working to focus greater attention on our members and how we can better serve them," Tate said. "We recently sent surveys to all our members and are looking for their suggestions and ideas as to how the chamber can better serve them."

Last August, MACC hosted its annual Membership Appreciation Luncheon, which offered every member present an opportunity to present a brief "commercial" about their business at the gathering. The chamber is also adding a Business Spotlight to its monthly luncheons, which will highlight one to three businesses.                                                                                                                                   

With the success of the chamber's annual gala last month, MACC is now working to further promote its members and add benefits to enhance its members experiences. Tate said the chamber staff is developing a "buy local" program featuring rewards, values and savings, and possible member-to-member discounts. The chamber's website will also be receiving a new look. 

Tate went on to say MACC will continue being involved in government and transportation issues in the region, even stepping up the chamber's participation in organizations like the 249 Partnership.

"We feel it is very important to represent our members' business interests to government, at all levels," he said.

With this in mind, MACC delegates will travel to Austin next year to meet with Magnolia area state representatives when the 89th Legislative Session begins.

Christmas Parade

MACC recently announced its annual Christmas Parade theme, An American Christmas, for the Dec. 8 tradition.

"We feel this theme is wide-open to a variety of ideas, such as traditional ways of celebrating Christmas in America, and/or a show of patriotism on the part of our participants," Tate said. "I hope everyone will plan to come out for the day of festivities, beginning with the parade at 10 a.m. Come for the parade, stay for lunch and take in the activities at the depot."

Festivities include the Magnolia Area Chamber of Commerce Christmas Parade and the Magnolia Historical Society's Hometown Christmas offering visits with Santa, the Christmas market, a chili cook-off, the Cookie Express and other family-friendly activities.

To register for the Christmas Parade or to learn more about the Magnolia Area Chamber of Commerce visit MACC online at, MagnoliaTexas.org or call, 281-356-1488. Also, look for the Chamber on Facebook where comments are welcomed.

Walgreens recently opened a new store at the intersection of FM 1488 and FM 1774 in downtown Magnolia. At the Oct. 26 grand opening, Walgreens officers were welcomed by the Magnolia Area Chamber of Commerce with a ribbon cutting for the new member.  City officials and chamber members were in attendance as well. At left, Walgreens-Magnolia Manager Chad Reno does the honors.

The Magnolia Area Chamber of Commerce Christmas parade will be held Dec. 8. This year's theme, "An American Christmas," offers an array of nostalgia and patriotism. Magnolia Area Chamber of Commerce (MACC) Chairman Barry Tate says the theme was selected in honor of history and America.

"While Santa Claus is an American icon we also wanted to give people the opportunity to show their patriotism in this election year and extend it beyond the November polls," Tate said. "Besides, what is more colorful than red, white and blue with Christmas green?"

Hometown Christmas is offered by the Magnolia Historical Society following the MACC Christmas Parade. Santa visits, the Cookie Express, games and the Christmas Market are all a part of the day's activities of Hometown Christmas at the historic Magnolia Depot Plaza on Melton Street.

The parade begins at 10 a.m. at the corner of Nichols Sawmill Road and Unity Park Drive. MACC suggests spectators arrive early. Parking and parade route details are forthcoming. Watch this publication for more information as the date approaches.

Early registrations will receive a discount on entry fee. Parade registration on or before Nov. 16, is $40 for Chamber members and $75 for non Chamber members; after Nov. 16 registration fees increase to $60 for Chamber members and $100 for non members. Deadline for parade registration is Nov. 26.Visit the Chamber's website, magnoliatexas.org to register for the parade or go by the Chamber office at 18935 FM 1488 to pick up an entry form.

Call 281-356-1488 for additional information.

Big news is on the horizon for those attending the Greater Magnolia Chamber of Commerce monthly business luncheon, Thursday, Jan. 24. The leadership and staff of the chamber will premiere a new business-to-business marketing and promotional program with, "Sidewalk to Success 2013." There will also be a sneak peek at the chamber's new website along with a look at its new logo. Chairman Barry Tate said members and the public are invited to this exciting reveal.
"We are growing and in response to that growth, we have updated our programs and look" Tate said. "We have a few other surprises in store for our members and potential members at this meeting, as well." 
A jackpot drawing will be played at the luncheon and three new-member ribbon cuttings for Big Papa Joe's Wastewater Systems, My Handyman Can and XClaim Media will follow the event, at the same location.
Doors for the MACC Business Luncheon open at 11:30 a.m. in the Celeste Graves Education Support Center, 31141 Nichols Sawmill Road. This Monthly Business Luncheon is open to the public and RSVPs are available by emailing, This email address is being protected from spambots. You need JavaScript enabled to view it. or by calling the Chamber at 281-356-1488. Tickets are $15 for members and $20 for non members.

Where there's smoke, there's fire and the trail of smoke in Magnolia March 22 and 23, will lead to more than 50 barbecue teams at Unity Park. The Greater Magnolia Chamber of Commerce will host its 19th annual barbecue cook-off, called the Magnolia Showdown.

Along with watching cookers at their best, tasting a few samples and seeing outstanding showmanship exhibits; there will be free live music by the Philip Griffin Band beginning at 8 p.m., March 22. 

For the third consecutive year, the cook-off will be at the 30-acre Unity Park off Nichols-Sawmill Road. Ven-dors offering specialty items return to the cook-off this year.

"This is a really big event," GMCC Magnolia Showdown Chair Gari Lynn Hessong said. "We never have a shortage of good food or fun."

Special accomodations for competitors and visitors are being offered at both the Executive Inn & Suites of Magnolia, or at Magnolia Inn & Suites. For more information visit www.executiveinnmagnolia.com, or magnoliainnandsuites.com.

The Greater Magnolia Chamber of Commerce Showdown, co-hosted by the City of Magnolia, is an International Barbecue Cook-ers Association sanctioned event. For details, email  This email address is being protected from spambots. You need JavaScript enabled to view it. or call 281-356-1488.