Posted on 09/02/2009 3:59:43 AM PDT by Kaslin
Small-business owners are sweating this summer -- and it’s not necessarily because of the weather. Many worry that a form of nationalized health care could soon become law, and that this would cost jobs.
“I give my employees health insurance but I can’t afford to meet the government mandates,” one owner told the National Federation of Independent Business. “I will have to eliminate several employees to reduce my payroll expense.” (NFIB is a trade organization that helps businesses).
“I don’t believe we’ll be able to comply. We will have to eliminate pay increases and Christmas bonuses. Full-timers will be eliminated and all staff will be part-timers, and that will likely be insufficient,” another added.
“In general, H.R.3200 will hurt my business due [sic] to increasing my costs. Ultimately that may mean letting people go. How is that helping the economy or small business?” wondered a third owner. No wonder NFIB has come out in opposition to the “reforms” proposed in the House of Representatives.
Many politicians insist they can add a government-run “public option” health insurance plan on top of the trillions of dollars in obligations our federal government is already facing. But small-business owners know better.
The government plans have a big problem: The extra taxation and spending would destroy many small businesses, the very foundation of the American economy.
Half of all private workers in the U.S. are employed in firms with fewer than 500 workers. These small firms have also created somewhere between 60 and 80 percent of all new jobs in the last decade.
But some politicians are willing to endanger that growth. Rep. Charlie Rangel, D-N.Y., chairs the crucial Ways and Means Committee. To pay for health care “reform,” he wants to slap a surtax on roughly 2 million tax filers.
Some 60 percent of these returns reflect money made by a small business or partnership. While 400,000 of people affected by the surtax derive most of their adjusted gross income from a small business, these taxpayers already shell out one quarter of all income taxes. They represent our economic foundation.
The proposed extra tax would be on a sliding scale: 1 percent for joint filers with more than $350,000, 1.5 percent for joint filers with more than $500,000, and 5.4 percent for joint filers with more than $1 million in adjusted gross income. In addition to higher taxes, the House health care bill would force small businesses with at least $250,000 in payroll to provide health insurance or pay a tax penalty up to 8 percent of payroll.
And as if the initial proposed tax rate wasn’t high enough, there’s every chance it could go up.
The House bill would empower the Office of Management and Budget to jack the tax rates up to 2 percent for those making $350,000 and 3 percent for those making less than $1 million, if bureaucrats decide that’s necessary. Businesses would have an even harder time preparing for the future, because they’ll never be able to know when their taxes may increase or how high they’ll eventually go. Few business owners would hire new workers under those conditions.
The national unemployment rate in July reached 9.4 percent, and of course we all want to bring that number down by creating as many jobs as possible, as quickly as possible. To do so we need to shore up small businesses, not chip away at them with higher taxes and expensive mandates.
As summer winds down, Obamacare seems to be on life support. Small-business owners have spoken. We ought to pull the plug, and start over again with an effective reform plan that won’t hammer our nation’s economy.
And there you have it. Less employment, lower wages, more temps, less advancement, less profits with a corresponding drop in tax revenue, but you’ll have health care whether you have a job or not. Sounds like the proposition of a lunatic.
Obammie and his Commies know this. It is part of their plan.
As the original “Marxist’s” original goal was primarily to eliminate the middle class, the current group see that one of the best ways to accomplish that objective is to eliminate small business.
They conglomerate everything into bigger and bigger business (while using business as the scapegoat to turn the people against business) so that industry is easier to nationalize (socialism or communism) or merely control (fascism).
later
LLS
I thought I saw where the NFIB was supporting one or more of the Dem’s positions (healthcare? cap and trade?). I didn’t pay too much attention, because I’m a former member, but it seemed strange to me when I saw it...
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“And there you have it. Less employment, lower wages, more temps, less advancement, less profits with a corresponding drop in tax revenue, but you’ll have health care whether you have a job or not. Sounds like the proposition of a lunatic.”
It’s all about control; it has more to do with ruling than it has to do with governing.
My wife and I have a small marketing company and we serve other small businesses and they are all struggling; healthcare, B2B, retail and non-profit.
“NFIB was supporting one or more of the Dem’s positions”
Wouldn’t be surprised.
I’m a former member of the National Association of the Self Employed and they did some stuff that wasn’t too sharp.
Small business is the backbone of our economy. We do the most hiring and are the most efficient operations because we have to be. We are already loaded up with rules and regs and taxes that make our margins pretty skinny. Now this admin is announcing that they are going to attack us again. Nice. This will just cause more layoffs and LESS tax revenue. I ask myself why would the government actively go after small businesses and I come to the conclusion that they are either completely ignorant about the economy or are hell bent on breaking this economy. With the takeover/rape of the banks and the auto industry, I am believing that they are intent on breaking the economy. Then What? The libs have always wanted to destroy this country in order to rebuild it in their socialist utopian vision. Problem is that in the process of that, we will be a destroyed country. Hey bamster, we do not operate in a vacuum. If we are a destroyed country, then we will be vulnerable to force from a foreign nation. They you libs won’t be in charge, you will be slaves just like the rest of us.
Hey barry, hurry up and fail already.
.....why would the government actively go after small businesses.....
Because there is money there. They are lawyers and know the little guy can be squeezed. The prices will go up all across the board and it will cease to be noticed. Small businesses don’t have any clout, pretty much defenseless.
I don't believe they see this as a problem. A big lib in our prayer group came in with an article last night entitled, "Inverting the Economic Order".
That's what they're up to, friends, and they don't care who gets hurt. Their sense of self-righteouness is all important.
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