Senate committee confirms Baucus plan will lower wages
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The Joint Congressional Committee on Taxation has analyzed the excise tax in the Baucus plan and come to the logical conclusion that it will raise prices for insurance policies. In two letters issued yesterday, the JCT acknowledged that the increased premium costs for health-insurance plans that qualify for the excise tax will increase costs to employers offering them, depressing wages directly or indirectly as a result, depending on whether they impose the total cost increase on employees. The second letter demonstrates that the effect of the Baucus plan and its disappearing subsidies on lower-income workers is to force them into a higher tax bracket, disincentivizing gains in employment.
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October 15, 2009 - 06:29 PM on October 15th, 2009
And let us not forget that if they raise taxes sufficiently, they can force small businesses to actually close their doors putting tens of millions more onto the government welfare roles.
Here’s exactly how retailers will respond to the Obamacare plan as it is currently being reported. Since the plan is to fine any employer that doesn’t spend at least 8% of their payroll on healthcare insurance for their employees AND/OR require every employer to provide said insurance for EVERY employee or face a fine equalling 8% of their payroll, Retailers (including restaurants) will take any (and possibly all) of the following options
1. Drop coverage to every employee and pay the fine.
2. Fire all part time employees and replace them with full time ones (this will mean millions will lose their incomes)
3. Force all full time employees to work over time or face termination.
4. Eliminate as many positions that are paid above minimum wage as possible and/or reduce the wages of as many people as possible to minimum wage.
This is how retailers and restaurants work. They have a lot of unskilled labor. Anyone who has worked in retail knows that when labor expenses go up, available man hours are cut back. The single largest controllable expense of any business is labor. When the cost of labor goes up, the amount of labor for the available funds goes down. When it costs $10/hr for labor, and you only have $100 available to pay for it, you only get 10 hours of labor. UNLIKE government, who is NOT responsible for the money that they spend, private companies can’t spend money that they don’t have, and they don’t have the ability to force the people where they get it from to hand it over like gun point. The government does that daily. The difference is they call it taxes.
October 15, 2009 - 08:16 PM on October 15th, 2009
Its all part of the plan, the political pigs put obama in office to help in the mass murder of the USA Just look and understand the evil that is behind this monkey obama. the white boys who locve the Red way are winning this fight for freedom and if you do nothing you will be the next jew in the oven and the cruel end will come to 60 million americans at the hand of this ape obama and his good white boy friends from all over the world.
October 16, 2009 - 10:17 AM on October 16th, 2009
Part of the Democrat plan is to trap workers in lower-middle class status and ensure their dependency on government. Lowering wages is certainly a great way to do this. Increased dependency on government – according to their calculations – improves Democrat chances for perpetual power.
This is just another of Team Obama’s surreal objectives.