The cost of Obamacare seriously threatens businesses and jobs

By James H. Shott

It is a simple concept: A business is an organization that provides products or services that it believes people need or want, and if it provides good quality at a fair price it should succeed. Some businesses are single-person entities, but most employ a few people or as many as thousands of people to perform tasks related to the production and sale of its products or services, and in return for their labor they receive agreed-upon compensation that enables them to buy things from other businesses like food, shelter, clothing and other needs and wants. It is what makes America run.

Since Leftists don’t understand the way businesses work, they view them with suspicion and not infrequently seek to punish them for doing things they must do to stay in business. They sometimes even seek to punish businesses when they don’t do things the Left thinks they should do, but which have no business-related function.

When you combine the Left’s abysmal understanding of business operations with its compulsion for government solutions to every perceived problem, and add in the habit of implementing solutions without fully considering the repercussions, the stage is set for mass chaos.

Case in point: The ominous effects of Obamacare on employers, particularly small businesses, have been discussed since healthcare reform was just a poisonous glimmer in the Leftist mind. But despite the ample economic reasons for why this healthcare reform was a bad idea, the Left still doesn’t get it: Obamacare raises operating costs for businesses that implement the plan, and when costs rise, businesses must raise prices and/or cut expenses to offset the increase. Higher prices discourage customers, who either find a better price from a competitor or just buy less of that product or service. Both put businesses at risk.

But the Left freaks out when companies opt to protect their customers and themselves from the harmful effects of higher prices when they focus on the biggest expense most businesses have: employee costs.

Because the Left’s solutions are poorly thought out, they fail the common sense test and therefore fail to persuade people to accept them on their merits. The Left then resorts to forcing its ideas on us. Barack Obama’s manic effort to replace traditional energy with “green” energy is a prime example of an idea that people rejected because they saw that it couldn’t work. Nevertheless, the Obama administration declared war on coal and oil production to force us to use inadequate wind and solar energy because they arrogantly believe they know what is best for the rest of us.

Since Obamacare increases health insurance costs, often doubling them, businesses have to decide how to offset those costs. They can cut expenses, raise prices, or some combination of the two. Those who can’t justify increasing prices and can’t cut enough other expenses must look at employment expense, and reduce full-time staff below the threshold level through staff reductions and/or reduce full-time employees to part-time hours. Even companies that decide not to implement Obamacare must pay a $2,000 per employee penalty.

But despite the fact that rising employee costs are the problem, the Leftists reject staff and hour reductions as unfair; believing the money to cover the enormous costs of Obamacare will simply appear out of thin air. Thus, when the Papa John’s pizza chain said it must raise prices or reduce employee hours to get expenses under control, the Left suggested boycotting Papa John’s: To convince the company to do nothing about increased employee expenses, the Lefties propose that people buy their pizza from a competitor. Only the Left would react to an employer trying to stay in business by boycotting it.

Other chains also are boycott targets for the same reason: Burger King, Domino’s Pizza, McDonald’s, and Applebee’s.

Obamacare’s anti-business and job-killing requirements are not the only reason the Left proposes a boycott; a business that doesn’t spend its money according to Leftist dogma also may be attacked.

A self-identified liberal website urges liberals to “bring these people down,” referring to a list of “fast food joints” that the website owner dislikes because of how they use their own money: Chick-fil-A, Cinnabon, White Castle, Waffle House, A&W, KFC, Long John Silver's, Pizza Hut, Taco Bell, IHOP, Arby's, Chili's, Cracker Barrel Old Country Store, Hardee's, Olive Garden, Red Lobster, LongHorn Steakhouse, Wendy's, and Outback Steakhouse.

All of these businesses deserve our support, and at least one organization supports businesses targeted by the Left’s loony idea. Rebooting America organized a Papa John’s Appreciation Day last week.

One employer who owns about 100 restaurants nationwide decided to pass on the costs to his customers along with reducing employee hours. He plans to put a 5 percent surcharge into effect to help offset the increased cost of health insurance and also to help customers see the harmful unintended or unadvertised effects of foolish, ill-considered policies like Obamacare.

In order to fix a healthcare problem that required only a little tweaking, our intrepid Leftist government instead tried to revamp an entire economic system and created a myriad of other serious problems. What’s really scary is that the worst is likely yet to come.

Cross-posted from Observations

Taxes By The Mile In The USA?

Taxes By The Mile In The USA? The Proposed Vehicle Mile Tax A Commentary by J. D. Longstreet They are testing the waters again in Washington. Always looking for an opportunity to take advantage of a crisis to squeeze even more money from the taxpayers of America. There is a proposal being floated about in “Foggy Bottom” to tax US drivers for every mile they drive in their cars, trucks, vans, SUV’s, or whatever. The Congressional Budget Office is referring to it as the “Vehicle Mile Tax” or VMT. Here’s what has happened: Due to the high per gallon price of gasoline many drivers have greatly reduced the use of their cars and trucks. My truck, for instance, is virtually parked. I drive it one or twice a week and then only on short hops -- all within the city limits. My truck is ten years old but has only about 50,000 miles on it. But it uses more gasoline than the family Buick. So it remains parked. It would seem that most American families are doing the same thing or something very much akin to it. A huge portion of the per gallon price of gasoline is state and federal taxes. So, you can imagine that when Americans began driving less and using less gasoline, the tax stream from gasoline into the tax coffers of the states and the federal government went from a roaring stream to a trickle. And THAT got the attention of the “taxaholics” in Washington, DC and in the states. Thus the proposal to tax American drivers for every mile they drive -- and that is on top of the taxes we are already paying on every gallon of gasoline we purchase. I must tell you that my state, North Carolina, has one of the highest taxes on gasoline of any state in the Union. So, when I heard about the “mileage tax” proposal, it got my attention. Just so we are clear: I HATE the idea! In 2008, here in North Carolina, something called the 21st Century Transportation Committee recommended the state adopt a “taxes by the mile” plan. As I understood the proposal, the state would carefully record the miles each Tar Heel driver drove, over the preceding twelve months, and the vehicle’s owner would be charged the appropriate amount in taxes for each mile driven. As North Carolinians take their cars in each year for the mandated annual state inspection (which by itself is a gigantic tax scheme!) The mileage on the odometer would have been recorded. This was to be the source of the mileage figures used to tax NC drivers. Transportation experts told us then that sometime later the state could switch to GPS tracking of NC Drivers. This scheme was called the “Road Use Tax.” It is interesting to note that NC had a Democratic Party controlled legislature in 2008. So what happened? The NC voters told the Democrats in the NC Legislature to hit the very road they wanted to tax -- and replaced them with a Republican controlled legislature. Oregon and California have also considered imposing such road taxes on their citizens, as well. The fact that driver’s pockets would be picked by a “tax by the mile” (Vehicle Mile Tax) road tax was just too much for the North Carolina voters to stomach. There is another disturbing aspect of these mileage tax rip-offs; the device attached to our cars would also emit a signal, much as a GPS device does, that would allow the government to know where we are, in our car, at all times. Sounds incredible, does it not? THAT HAS been suggested. More than likely, it would be continuous tracking of our road miles. Either way, it is just more big brother government intrusion into our lives. Look: US drivers pay approximately 35 billion dollars in federal gasoline taxes annually. You’d think our highways would be paved in gold rather than asphalt! This whole thing smacks of another trick by the liberal-socialists to herd Americans into mass transit. It is all a part of the “green agenda” to deprive Americans of their celebration of freedom – the automobile – in favor of bicycles, trolleys, and commuter trains, etc. There is an editorial at the Washington Times we urge you to read. It is entitled: CBO’s toll-road fib. You will find it HERE. “Motorists are one of the most overtaxed groups in America, and the automobile has done more to enable this country’s economic success than any other invention.”(Read the entire article in the Washington Times HERE.) I am inclined to believe this is more of the leftist agenda to dismantle America until it becomes just another third-world country. J. D. Longstreet