Posted on 11/18/2012 3:53:03 AM PST by Libloather
How ObamaCare will keep unemployment high — by forcing small companies to cut their workforce to fewer than 50 people
By MICHAEL TANNER
Last Updated: 4:32 AM, November 18, 2012
**SNIP**
Under ObamaCare, employers with 50 or more full-time workers must provide health insurance for all their workers, paying at least 65% of the cost of a family policy or 85% of the cost of an individual plan. Moreover, the insurance must meet the federal government’s requirements in terms of what benefits are included, meaning that many businesses that offer insurance to their workers today will have to change to new, more expensive plans.
ObamaCare’s rules make expansion expensive, particularly for the 500,000 US businesses that have fewer than 100 employees.
Suppose that a firm with 49 employees does not provide health benefits. Hiring one more worker will trigger the mandate. The company would now have to provide insurance coverage to all 50 workers or pay a tax penalty.
(Excerpt) Read more at nypost.com ...
I think his plan is to force bankruptcy or losing down of most private business so he can nationalize it.
Look at the bright side. The idiot in chief will get a whole lot less tax revenue to buy more toys and technology to enslave you with. Get some popcorn, sitt back and watch the implosion begin...: )
Look at the bright side. The idiot in chief will get a whole lot less tax revenue to buy more toys and technology to enslave you with. Get some popcorn, sit back and watch the implosion begin...: )
Fire the least productive - keep the most productive on for 29 hours a week. They won’t lose much production. If you are a 24 hours a day business, that means you have 168 hours to fill, that’s 6 employees. That means you could have yourself as the manager and 7 employees available at any one time.
That’s plenty.
> All true, but in certain industries - like the restaurant business - those factors have far less impact and you’ll certainly see a much greater proportion of part-time workers.
You’ll also see a lot less people apply for part-time work unless there is no alternative because it’s impossible to take care of your family with part-time wages. Hell nowadays is almost impossible to take care of your family with 2 full-time jobs!
> All true, but in certain industries - like the restaurant business - those factors have far less impact and you’ll certainly see a much greater proportion of part-time workers.
You’ll also see a lot less people apply for part-time work unless there is no alternative because it’s impossible to take care of your family with part-time wages. Hell nowadays its almost impossible to take care of your family with 2 full-time jobs!
The more unemployed, the more power government acquires. One day, the sheep will be fed a steak dinner and think it’s just grand. The next day they will find that the steak came from the milk whose teat they were previously sucking at.....
I certainly hope everyone realizes #9 was pure, unadulterated sarcasm.
The ‘irony’ being that if my little ‘scenario’ were to be put in place, the MISadministration would claim unemployment went down....
Of course when the hours get cut back, the workers will have to ‘enjoy’ a cut in pay......
Remember Besty McCaugley, Mark Levin, and Doc Janda etc on a screed about the HHS Secretary and her vast powers under this act of "the Secretary Shall"?
What is stopping her from changing this from 50 to 1 employee?
If so, aren't all the "enemies" of Obama making themselves known and will Valerie Jarrett then get her revenge like she has noted? Food for thought....
Likewise, everyone making big money should form an LLC, become an employee of it. Have their employer pay the LLC. Same result. LESS money to the Hussein Islamo-mafia.
They are already changing the language from full time 'workers' to FTE - Full Time Equivalent.
Then by computing the number of hours worked all year by all employees, including overtime, they divide and if the number equals the gubmint's determination of 50 employees working regular hours they are in the game, like it or not.
You are bing selectively silly.
Some companies will have open hours only enough to work their people under the Obamacare minimum.
More Mom & Pop companies will find that Mom & Pop are there more & more, but they also have the right to pay themselves more and more for those hours. There always are hours in the normal 8 hour day which are asically non-productive. I may hire a person for 40 hours=8 x 5. But now, I will work that person only 28 hours—4 days x 7 hours or 5 days for 5 1/2 hours, which will be under the 30 hours cutoff. School buss drivers work a split shift—every day. Morning——Evening. You will be surprised how many locations will adopt a 28 hour or so week.
Welcome to The New Normal. Those who have a life style that needs at least 40 hours a week, will be working another job. More commuting- and that isn’t deductible.
The Young, failure to think beyond their noses voters, will get a serious and fast lesson in how elections have consequences.
I already know 6 businesses that will lay off workers and or shut the doors forever. One owner will work out of his home—it is a service business and he will have no clients come to his home—he will commute to them. He will survive—but even the part time workers he had will have a tougher time paying for their college classes. He was letting them work in the hours when they were not in class, and he was adjusting their work hours every semester, around their classes. No More—and possible NEVER AGAIN. He is old enough to drop the trappings of a big prestigious office location & the accompanying rent. He has a clientele he can cherry-pick and keep the ones who he has the best rapport with and do the work out of his home....alone or with a part time clerk. His own kids are grown, so he can turn a bedroom into a nice office. He is doing just that.
Another friend is moving his service business out of the building he owns & is renting that space to another person who pays him. He moved his service business into his garage—and never has a customer at his location. He does service calls at their locations. He is making about 15% less gross on the service business, but he is making more on the rent than the lost 15%. He is spending less on gas right out of his house, and can eat lunch at home when his service calls are not far away. All of this is saving him effort and $$$, and making him more income on the flip side.
ERGO: Those who have built their business from scratch know how to stay alive. They can cope with smaller space & fewer clients and fewer rules from the Federal government. Both of the above service entities have also lost every penny of cost of Workmen’s Comp- a serious cost in some states. They will not have to provide health insurance to any employee. No rent. No big power bill. More flexible hours...for themselves only.
For some businesses in the USA, all of this is a plus. The rest will wither & die trying to cope with Obama.
Best business model may be the small family business. Children will have to accept the fact that if their parents own a small business, the children will have only one carrier choice, work for the business. For the most part, a small family business run by family members is resistant to turnover, unionization, and whistle blowing. Individual family members have more dirt on each other, but that works both ways. When families are faced with the external threat of totalitarian government, internal differences among family members become less important.
This is what is fueling the explosion of project-based sites and crowd-sourcing sites. You don’t hire a part time tech writer but have two or three favorite tech writers on a site who work you and others. The contractors do no get health insurance.
It certainly doesn’t make sense. All of the democrats can’t be stupid. So why did ALL of them vote for this?
It's hard to imagine, until you look at the leadership. Obama, Biden, Reid, Pelosi. How much worse could it be? And that's who they've CHOSEN to represent them.
The few who have a couple of brain cells, like Zero, Clinton and Clinton, are Marxists.
What is the law for a self employed person with only himself as an employee? Such as a real estate agent. Does he automatically pay a fine?
Another question, if he pays a fine is he then insured?
Unfortunately, the typical American family is too misled by television role models to embrace the family business lifestyle required. Humility is a necessary component, and we aren't very good at that.
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