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Bill Modeled After Wal-Mart Law Would Apply to Smaller Firms
WJLA 7 News ^ | March 16, 2006

Posted on 03/17/2006 12:21:05 AM PST by beaversmom

ANNAPOLIS, Md. (AP) - Now that Wal-Mart is required under Maryland law to spend at least eight percent of its payroll for employee health benefits, some state lawmakers want smaller businesses to pay up, too.

Legislation introduced Wednesday in Annapolis would require all businesses to spend 4.5 percent of their payrolls on health care for both full and part-time employees. As with the larger employer law, the money would either have to be use for company-provided insurance or paid to the state.

The bill's sponsors says the 800,000 Marylanders without health insurance could benefit from the proposal. Small business owners say it will cost them too much, but Prince George's County Delegate James Hubbards says the legislation will include grants for some businesses to offset the cost.

A hearing on the bill is set for Thursday.


TOPICS: Culture/Society; Government; US: Maryland
KEYWORDS: asshalfs; constitutionlist; govwatch; libertarians

1 posted on 03/17/2006 12:21:11 AM PST by beaversmom
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To: beaversmom
Loss of 4.5% will put some businesses out of biz.
2 posted on 03/17/2006 12:26:35 AM PST by ncountylee (Dead terrorists smell like victory)
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To: 4bbldowndraft; albertp; Allosaurs_r_us; Abram; AlexandriaDuke; Americanwolf; Annie03; Baby Bear; ...
congress should consider passing a law forcing maryland to secede from the union and become a part of canada.

Libertarian ping.To be added or removed from my ping list freepmail me or post a message here

3 posted on 03/17/2006 12:30:08 AM PST by freepatriot32 (Holding you head high & voting Libertarian is better then holding your nose and voting republican)
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To: ncountylee

Then when the strapped businesses decide to out source jobs to Outer Mongolia the same Democrats will cry bloody murder.


4 posted on 03/17/2006 12:30:32 AM PST by DHerion
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To: beaversmom

This was the obvious next step. I wish Wal-Mart would close all their stores in MD and lay off all their employees there. That would stop TN and other states from trying this and stop MD from doing it to smaller businesses.


5 posted on 03/17/2006 12:47:09 AM PST by SUSSA
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To: SUSSA
Yep, Change the name and incorporate each store, Wall Mark, Will Mart, Mary Mork, etc., cut staffing to just below the arbitrary number, cut inventory to a manageable level, then divide and lease out extra space to restaurants.

Make sure everyone knows why they lost their Wall Mart.
6 posted on 03/17/2006 1:09:30 AM PST by captain anode ("love it or leave it" Ramsey is a bottom feeder.)
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To: beaversmom
Explain to me again how that Constitutional amendment allowing naturalized citizens to become President is not going to be passed. Or how the 17th amendment that took away the vote for Senators from the state legislatures is the second worst amendment after the 16th.

Whether it's a Wal-Mart first, everyone second type law such as this, or anti-smoking laws, state legislatures are hardly the bastions of reason away from the mob. Increasingly, they are the mob.

7 posted on 03/17/2006 1:32:26 AM PST by Dahoser (Time to condense the spending nonsense: Terry Tate for OMB head.)
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To: beaversmom

Well, that didn't take long, did it? Ya think the politicians could have waited, say, a year or so before starting the incrementalism that they are well-known for (and good at). Apparently, they have given up all pretenses and going for "in-your-face" authority.


8 posted on 03/17/2006 3:32:11 AM PST by fuquadukie (If you can't hang with the big dogs, then don't jump off the porch.)
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To: fuquadukie

Yep, start by appealing to the morons who decry corporate America and go after Wal-Mart. Once the blood is in the water, come back for Round 2 and snap up the small fry.


9 posted on 03/17/2006 3:38:58 AM PST by CheyennePress
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To: beaversmom
Small business owners say it will cost them too much, but Prince George's County Delegate James Hubbards says the legislation will include grants for some businesses to offset the cost.

Obviously, "Prince George's County Delegate James Hubbards" has never owned & operated a business, or probably done any other productive work in his sorry life.

A couple of salient points:

1) Businesses do not actually pay these costs- their customers do-- the costs always get passed along to those actually forking over money- the customer.

2) Worse, when increased costs of doing business are mandated ( forced ) on a company, they look to cut expenses- and guess what? Payroll is one of the biggest costs, so they will start culling the less-productive workers. Those "benefits" don't mean a lot if you lose your job.

Idiots.

10 posted on 03/17/2006 3:42:03 AM PST by backhoe (Just an Old Keyboard Cowboy, Ridin' the Trakball into the Dawn of Information)
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To: beaversmom
As with the larger employer law, the money would either have to be use for company-provided insurance or paid to the state.

Om 2nd thought, maybe I like this. I'm an employer that provides health insurance to my employees. I have employees making $35-45,000 per year. Let's use $40,000 as an average. Monthly premium (H&W) is ~$1,000 or $12,000/year. Drop the insurance and pay $1,800/year (4.5% of $40,000) to the state? How quick would a business owner make that decision, thereby invoking... The law of unintended consequences.

'Course, I would be hard-pressed to do that. I value my employees and I could only imagine the health care system that would be managed by bureacrats... the same type of bureacrats that bring you the DMV and the transportation department (such as PENNDOT).

11 posted on 03/17/2006 3:43:35 AM PST by fuquadukie (If you can't hang with the big dogs, then don't jump off the porch.)
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To: fuquadukie

-Monthly premium (H&W) is ~$1,000 or $12,000/year. Drop the insurance and pay $1,800/year (4.5% of $40,000) to the state? How quick would a business owner make that decision, thereby invoking... The law of unintended consequences.

'Course, I would be hard-pressed to do that. I value my employees and I could only imagine the health care system that would be managed by bureaucrats... the same type of bureaucrats t-hat bring you the DMV and the transportation department (such as PENNDOT)-

I doubt if bureaucrats have any idea what insurance costs. Neither do employees who are covered and complain about how poorly they are paid. That 40k employee can cost an employer from $50k to more than $80k a year, depending on benefits. If you took all the employers payments and gave them to the employee to pay, it actually, in the long run, would be cheaper for the employer. It would also make the employee mad when they see how much is actually being taken from them.


12 posted on 03/17/2006 4:01:20 AM PST by KeyWest (Help stamp out taglines!)
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To: beaversmom

Kiss those Maryland Jobs G'bye!!


13 posted on 03/17/2006 4:07:47 AM PST by tcrlaf
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To: fuquadukie

It's an Election Year...

"Vote for me and I'll/I give/Gave you FREE CRAP!!!"

And not a WORD will be said as the jobs start leaving the state, Unemployment rises, poverty, welfare needs rise, leading to higher taxes, leading to even more welfare offers, leading to even MORE dependency on Democrats to survive.....

I can see this trend so clear that it SCARES ME!!!


14 posted on 03/17/2006 4:16:21 AM PST by tcrlaf
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To: fuquadukie

Actually, how would that work for the $40,000 employee?

As I don't think he'll qualify for coverage under the state plan, thereby the state is actually making the problem worse.


15 posted on 03/17/2006 4:16:51 AM PST by EBH (We're too PC to understand WAR has been declared upon us and the enemy is within.)
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To: ncountylee
"Loss of 4.5% will put some businesses out of biz."

D@mn right! This is just another payroll tax disguised as some bill for the people. When you operate on 10% profit to just break even in a market already saturated with competition your toast.
16 posted on 03/17/2006 4:26:45 AM PST by poobear (Islam - A Global Lynch Mob !)
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To: ncountylee
Loss of 4.5% will put some businesses out of biz.

"I can't be responsible for every under-capitalized business out there."

-Hillary Clinton

17 posted on 03/17/2006 4:29:58 AM PST by LouD
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To: Lil'freeper; big'ol_freeper; hellinahandcart; tgslTakoma; Tolerance Sucks Rocks; AlwaysFree; ...

Told ya.

This really is turning into "The Land of Peasant Living."


18 posted on 03/17/2006 4:31:39 AM PST by sauropod ("War is the Devil's way of teaching Americans geography" - Ambrose Bierce)
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To: Renfield

I don't know how to ping the MD state FReeper list. Could you do it?

Thx, 'Pod.


19 posted on 03/17/2006 4:33:55 AM PST by sauropod ("War is the Devil's way of teaching Americans geography" - Ambrose Bierce)
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To: beaversmom

I don't got what you got, so what you got is mine. When anyone, republican or democrat, begins to believe that the state or state force is the solution to any problem then you bet layer upon layer of crap like this.


20 posted on 03/17/2006 4:39:26 AM PST by Modok
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To: Modok

That was neat, get became bet when it posted.


21 posted on 03/17/2006 4:40:42 AM PST by Modok
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To: beaversmom

This will end up raising taxes; they should pay more attention to what is happening with South Carolina. The tobacco settlements are tied to sales of tobacco; tobacco sales are down so they could reduce the amount of settlement money the state had come to rely on. They may have to raise taxes to make up the difference.

Same thing here. If the state gets used to getting the 4.5% from a bunch of companies that can't or won't pay for healthcare, then later those companies come into 'compliance,' the gov't will experience a shortfall that you can bet they won't overcome by tightening their belts.


22 posted on 03/17/2006 4:52:45 AM PST by Diggler
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To: Dahoser
Whether it's a Wal-Mart first, everyone second type law such as this, or anti-smoking laws, state legislatures are hardly the bastions of reason away from the mob. Increasingly, they are the mob.

Yeah, a mob of Fascists. This Wal-Mart law BS is right out of the Communist Manifesto.....

23 posted on 03/17/2006 5:21:14 AM PST by Thermalseeker
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To: Modok
That was neat, get became bet when it posted.

Solbr flxres.

24 posted on 03/17/2006 6:08:18 AM PST by Tolerance Sucks Rocks (Now is the time for all good customes agents in Tiajunna to come to the aid of their stuned beebers!)
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To: beaversmom

Won't some employees just have their salaries lowered by 4.5 percent in response to this thing if it becomes law. When I worked for a beer and wine store in Montgomery County back in 1999, I just got cash payed every week, no health benefits.

I question whether my old boss would have just paid an additional five percent to the state ON TOP of my weekly earnings, since his business is in a quite competitive market.


25 posted on 03/17/2006 6:12:49 AM PST by Tolerance Sucks Rocks (Now is the time for all good customes agents in Tiajunna to come to the aid of their stuned beebers!)
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To: Thermalseeker

I am a small employer, but so are many businesses. This will be yet another tax that will make me wonder if I am working for myself or as a tax collector. After getting my taxes done yesterday and seeing that I owe yet another pile of money to these deadbeats, I am seriously thinking about letting my people go and finding something to do that doesn't involve sending half my money to the many government entities that think I work for them.


26 posted on 03/17/2006 6:17:15 AM PST by shelterguy
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To: beaversmom

Do I read this to include places like McDonalds, Wendy's, etc., who hire teens part time?

I can't see anyone thinking this is a good idea (except those employees of government who constitute too large a percentage of the state's population).


27 posted on 03/17/2006 5:41:16 PM PST by Abby4116
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