By Sally Mulder
As a small business owner, I realize that we have passed the point where it makes economic sense to grow or expand your business. Hiring new employees is suicidal while self-preservation dictates lay-offs and cut backs. Small businesses are rapidly approaching the point where the disincentive to continue to operate is overwhelming.
Contrary to the propaganda spewed by Hollywood, the media, and the Democrats – Republicans aren’t guiltless either, but are much more sympathetic to business – , business owners truly care about their employees. We want our employees to prosper, if for no other reason, self-interest. Let’s just say a happy employee is a productive employee. Beyond that, however, we genuinely care about our employees, their families, and their general welfare. We do, actually have been doing, everything in our power to ensure our employees are receiving a paycheck. Having cut back on expenses to the bone, we’ve been forced to lay people off and drastically reduce the remaining employees’ hours. This is a painful process for us since we feel a responsibility to our employees. I know other business owners are suffering through the same decisions.
We, as do most businesses, offer our employees health care insurance which some choose not to purchase, that is their right. They would be more likely to sign up for the insurance if the premiums were lower. Unfortunately, we pay through the nose because small businesses are prohibited from forming a insurance co-op or from purchasing insurance across state lines. If just these two restrictions were removed, premiums would be drastically reduced, better plans would be available resulting in more Americans with great health choices! What’s not to like?
With the new so-called “health-care reform”, businesses are inadvertently encouraged to discontinue offering insurance or to cut employees. Why?
First, if we discontinue offering insurance we pay only a $750 fine per employee. That’s a substantial savings.
Second, the reform offers a subsidy for businesses with 26 or fewer employees. It is also offered if the average salary is $40,000. Any businesses not meeting those criteria lose out on that 35% benefit! If anyone has an explanation how this will encourage hiring vs layoffs or raises vs stagnant salaries, I’d love to hear it.
Why do I say we are approaching a point where there is a real “disincentive” to continue as business owners? Very simply, why would I continue to work long, hard hours solely to pay my employees and taxes? I mean, I hate to say I’m selfish, but come on! Many businesses are now at that tipping point; no profit with all generated money going to expenses, employees, and the government. Would anyone continue to work for free?
An anesthesiologist, while generally not thought of in these terms, is a small business man. Under Obamacare, his salary will go down 80%. What possible incentive, other than love for his fellow man, is there for an anesthesiologist to continue working? What incentive is there for others to enter this field? I suggest we all stock up on Irish whiskey and bullets, trust me, you’ll be glad you did. I realize there is a perception that doctors have a “cushy” job or are greedy, even so, are you aware of this recent poll?
A shocking, new survey in the New England Journal of Medicine says that 46% of US doctors will either quit or be forced out of their practice if Obamacare passes. While this number is shocking because it is fretfully high and means that nearly one out of every two doctors in the US will no longer practice if Obamacare passes, it is nonetheless a dependable figure reported by a leading physician search firm with offices in the Atlanta and Dallas area, the Medicus Firm.http://www.associatedcontent.com/article/2798380/shocking_survey_in_new_england_journal.html?cat=75
I don’t know about you, but I’d rather have a “greedy” doctor to see than no doctor at all.
I realize that it’s easy to think, get the money from businesses. In reality, what you are saying is, take the money from me.
First, businesses will be forced to pass these costs on to consumers. Basically it becomes a shell game: the government takes the money to benefit others, the businesses raise prices to recoup lost money.
Second, “big businesses” will have to find money for these government grabs. If you aren’t a government employee expect this legislation to effect future raises. If you have an IRA you will also see the detrimental monetary effects.
Third, as businesses are forced to lay-off employees more Americans will need unemployment benefits. Once more, all tax paying Americans will financially feel the pain.
I realize that businesses seem like impersonal, cash producing cows. It seems like a no-brainer to run a successful business, bet they could use some instruction from DC though. After all, businesses are just rolling in dough.
The truth is businesses are run by your family and friends. They are employing your family and friends. In truth, if you have a IRA, you are a business owner.