Posted on 03/22/2013 12:39:43 AM PDT by 2ndDivisionVet
Today the NY Times has a case study on the cost of Obamacare to one small business. The business in question is Baked in the Sun, a California baker with 95 employees.
Baked in the Sun does about $8 million in annual revenue, however margins for bakers are tight so their annual profit is only about $200,000. Because the business has over 50 employees, they will be required to offer health insurance to their employees or pay a fine for not doing so.
The owners estimate that the cost of compliance would be $108,000 per year plus $10,000 in overhead to manage the plan. The cost of paying the fine for not offering insurance would be $130,000. So they have a choice between losing 64% or 65% of their annual profits.
The article goes on to note that not all employees will take the insurance being offered. Some will already have it through another individual--a spouse or parent. So the actual cost of offering a plan will likely be less than the potential cost. Of course, no one knows what the plans themselves will cost yet so it's all a guess at this point.
In any case, just a week ago Five Guys burgers announced the cost of Obamacare compliance was going to force them to raise prices. Matt Yglesias, who writes for Slate, was quick to call them "whiners."
Obamacare is going to reduce his profits by about one-eighth and he (and any investors in his business) will eat the loss. With corporate profits as a share of the economy at an all-time high, nobody's going to cry for him either.
In other words, eat the 1/8 loss of profits and shut up about it........
(Excerpt) Read more at breitbart.com ...
I have looked at the projected costs for compliance and this is going to be a disaster.
A lot of companies are either going to fire full time workers or go out of business
The only alternative is to hire only individual subcontractors and have no employees. That is where I have been since I started my business, but I’m not baking, either.
I don’t see how anyone can afford Five Guys Hamburgers as it is.
But this whole thing is simply a way to get to complete government run healthcare.
I’m eating the $1 bacon cheeseburger at Burger King when I get a few dollars in my pocket.
I love fast food burgers. And now I’ve got something to read while eating. I can read the Magilla Gorilla’s calorie count on the package so I’ll now know exactly how much weight I’ll gain if I don’t exercise. Boy, that’s nice to know.
He doesn’t want Americans working, at least not for someone else.
Hey dont worry! The Republicans will take a stand and defund Obamacare.........
The 5 guys close to me is usually very busy. I go once in a while.
I see 46 people losing their jobs here.
Over 50% of the jobs, under 20% of the GNP. More truth to the old adage that money talks...
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