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.
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."
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?
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.
