July 4, 2012
Hold on to your socks, the part time hiring of employees will become the new normal. The biggest prohibitive hit against job creation is in full motion. The consequences from Obamacare place a drag on the economy that is undeniable. This mugging of small business will guarantee that the primary engine of employment will sputter and knock, as the federal government forces higher and higher taxes on the last semblance of free enterprise.
Do not ignore the significance of this seminal moment. Forget about any economic recovery on Main Street. The unemployment stats will be stuck in a permanent loop, as the gross domestic product stagnates, at best. The more likelihood is that the characterized “double dip” recession will experience a full-blown depression. Government’s response will inflate prices in a feeble attempt to stave off deflation retractions.
Ponder the fallout of this escalated assault on the middle class. Larry Kudlow portrays in John Roberts Is a Super-Taxer the Supreme Court ruling as a dangerous precedent.
“The Roberts court has served up a “tax mandate” that is more powerful than the still-limited Commerce Clause regulatory mandate. Roberts has created a huge new loophole. Instead of new purchase mandates, we’ll have new purchase tax mandates.
Americans for Tax Reform estimates that Obamacare contains 20 new or higher taxes on American families and small businesses. Investor’s Business Daily says this comes to a $675 billion tax hike over the next decade.”
Watch the video of Stephen Moore, Senior Economics Writer with the Wall Street Journal, explaining that nearly 75% of Obamacare costs will fall on the backs of those Americans making less than $120,000 a year.
How Will The Supreme Court’s Decision To Uphold Obamacare Affect Small Businesses And Job Creation?, confronts the consequences of approving the tax mandate.
Beginning in 2014, the “Employer Responsibility” provision would require employers with 50 or more workers to provide health coverage.
Critics say it could hurt small businesses that have more than 50 workers and can’t afford to offer health care coverage. Moreover, it could curb hiring among companies that have fewer than 50 employees.
Also, “A lesser-known provision of Obamacare penalizes small businesses for hiring more than 25 employees, said Ben Piper, President of Ben Piper Consulting LLC. “Small businesses that have 25 or fewer employees and offer health care insurance will receive a 35 percent tax credit under the law.”
When the pro government mouthpiece CNBC reports of negative aftermaths, you know the prospects are awful. From Small Business on Obamacare: No Reason to Hire or Invest the warning follows:
Jim Amos, CEO and chairman of Tasti D-Lite, a frozen yogurt franchise that operates in 14 states as well as globally, is certain of one thing: The ruling will hinder growth in the franchise space. “It’s going to force franchisees to shift workers to part-time to avoid the 50-employee threshold,” he said. “It will keep new owners and new openings on the sideline.”
The Street exhibits an unsupported sentiment in, Small Business Reacts to Obamacare Ruling, “small businesses by and large are resigned to the law and preparing to move ahead with the required health care changes.” Maybe the more accurate assessment, in this same article is the operative response.
“Still, the Small Business & Entrepreneurship Council, a nonprofit advocacy and research organization dedicated to protecting small business and promoting entrepreneurship, says the ruling is a “major blow” to entrepreneurship overall.
The SBE Council has a broad-based membership of 100,000 members comprised of self-employed and small to mid-size businesses across industries.
“Today’s ruling by the Supreme Court undercuts freedom, which is essential to economic growth and entrepreneurship. Entrepreneurship is on the decline in the U.S., and we need policies that will encourage risk-taking and start-up activity. Intrusive government policies and punishing taxes, like the Affordable Care Act with its individual mandate, work against a vibrant entrepreneurial ecosystem, ” SBE Council President and CEO Karen Kerrigan says in a statement.”
Add to the intentional and punitive burden that especially targets the independent business, the long list of corporate exemptions to the Obamacare requirements. These waivers are pure crony favoritism. Can anyone have confidence that the Obama administration will apply the law equally when their willingness to reward campaign supporters is so well established?
Over a year ago, Human Events listed HOW TO GET AN OBAMACARE WAIVER.
1. Join a labor union: The waiver list reads like a “who’s who” of Big Labor organizations.
2. Work for a huge corporation: Jack-in-the-Box, Cracker Barrel, Ruby Tuesday’s, Waffle House… these are among the most recognizable names of corporate waiver winners.
3. Work for a health care company: Quite a few of these exemptions go to the health care industry and pharmaceutical companies.
4. Work for the government: State and local governments get plenty of ObamaCare waivers.
5. Open a luxurious boutique in Nancy Pelosi’s district: Fully 20% of the latest ObamaCare waivers go to luxury businesses that happen to be located in the district represented by House Minority Leader Nancy Pelosi.
6. Live in Nevada, New Hampshire, or Maine: These three wonderful states have been granted special exemptions from many of ObamaCare’s provisions.
The law that “Big Phama” and the insurance carriers wrote has small business at such a disadvantage, that the actual survival of independent enterprises is at stake. When establishment business reporting sounds the danger siren, their corporate sponsors usually take note. The dancing in the corporate suites just goes to prove that the centralization of everyday commerce is behind the draconian burden placed on small business under Obamacare.
Most Americans know little of the risks and responsibilities of being in business. However, many more residents will experience the plight of unemployment and the curse of government dependence. The strength of economic viability must rest upon a sound foundation of small business. The bulk of jobs come from this sector. By inflicting financial costs, that bankrupt Main Street only leads to the destruction of prosperity.
This article was posted: Wednesday, July 4, 2012 at 6:49 am