Jimmie Bise gives you a preview of the obituaries that will be written if Obamacare passes.
…to drive home the real cost to real people, I decided to do some quick “back of the envelope” calculations to see just what kinds of businesses might have to start firing people if the President’s health care scheme becomes law.
Consider Company A, which employs seven people: a manager, an assistant manager, and five workers. The owner pays himself a salary of $70,000 per year (about $35/hour), the manager $52,000 ($25/hour), the assistant manager $35,000 ($20/hour), and the five employees $21,000 (about $10/hour). That makes a payroll of $262,000. Now, the article doesn’t say how much the fine for a payroll that size would be, so I’ll assume either 6 percent ($15,720) or 4 percent ($10,480). The lowest total, as you can see, is more than half the salary of one of the worker bees and the higher figure is even worse. If I were running that business, I’d say the easiest way to solve my problem would be to fire one of the worker bees. That would reduce my payroll to escape the fine and it would leave me with more money as well. Sure, my business would be less productive, but it’s not terribly difficult to get make up for that one lost employee by having my other six work a little bit harder.
So what kind of businesses might fit Company A’s profile? How about a small restaurant or a neighborhood grocery store? Many franchised convenience stores could meet that description, as could any number of local insurance companies, construction companies, and contractors.