Posted on 11/27/2009 3:00:52 PM PST by FromLori
Costs a burden on businesses
While President Obama and congressional leaders say they would like to do more to spur job creation, economists and business executives warn that their plans to impose new health care and climate-change costs on corporations would have the opposite effect.
The initiatives, according to this analysis, are likely to overwhelm any positive impact on jobs from stimulus measures by giving businesses a reason to keep laying people off.
The House's health care bill would raise the cost of hiring in a straightforward way: by charging businesses a new payroll tax of up to 8 percent if they do not provide health insurance to workers. The Senate plan would impose smaller fines on those same employers.
The House-passed climate-change legislation would not add directly to the cost of hiring, but would raise energy prices, which are a major cost of doing business. Economists say that many companies would react by hiring fewer people.
Employers have been on a firing binge of historic proportions in the past two years as they cut their costs to stay in business, leaving nearly 16 million Americans unemployed and unable to find jobs.
Trying to reverse this trend is a top goal of nearly every political leader. Mr. Obama and congressional leaders are scrambling to find new ways to spur job creation, including possibly resurrecting a decades-old tax credit for employers who add jobs.
But economists warn that lawmakers in the meantime are neglecting the impact on hiring decisions caused by their ambitious plans on health care and climate change.
The legislation has "perverse economic effects,"
(Excerpt) Read more at washingtontimes.com ...
There's always a hole that needs to be dug and filled again.
*eye roll*
Seem to stifle? What about, IT IS STIFLING? No one with an ounce of business sense is going to hire or expand in the US with this looming government takeover of everything. If anything, I’d be pro-actively trying to bail out of this US economy and fascist government control as fast as possible. Hire people, LOL!
The only salient point is any federal version of socialist health care or cap and tax are unconstitutional since Article 1 Section 8 does not specifically nor expressly grant Congress the power to regulate health care or energy.
I know but that does not seem to stop them howard dean just told the truth about the costs of obamacare bu it does not seem to matter.
http://bluelori.blogspot.com/2009/11/howard-dean-admits-obamacare-is.html
I’ve talked to a bunch of contractors and sub contractors who are building a new garage at my place.
All these guys are totally bummed about the future, especially the healthcare bill.
These two bills alone will condemn us to several generations of European Social-Democrat levels of unemployment, probably permanent unemployment above 10%.
I know my husband is a Superintendent for a Commercial Construction Company and all the men even the old timers do not recall things this bad and he has been there 37 years was even off himself for 3 weeks.
Imagine the effect on jobs if Harry Ried announced that he’s had a change of heart, and was setting all left wing agenda items like health care seizure and global warming scams aside for now.
The framing guy asked the concrete guy “how’s business”
The concrete guy said “if working two days a week is busy, we’re busy”
True I know Carpenters in St. Paul have over 1,200 on the waiting list to go back to work.
Obama wants to lower American living standards. The health care bill is just another tax. Any benefit derived from health care coverage and treatment will be worth much less on average than the tax paid. The carbon taxes will cause all energy costs to rise and encourage manufacturers to leave the US. Inevitably, we will continue to have more unemployment, lower discretionary income, wage reductions and higher prices for necessities such as food and energy. Obama’s profligate spending and Bernacke & Giethner’s war on the dollar will further reduce purchasing power.
Obama is starting to resemble an early Robert Mugabe of Zimbabwe.
With so much focus on health care mandates and carbon limits, other pending tax increases have not received much attention. The House health care bill has some substantial tax increases totally unrelated to health care. The House bill proposes a 5.4% surtax on high earners and some substantial business tax increases. The House bill will force businesses to make interest free loans to the IRS to avoid additional taxes and penalties for tax underpayment. The House bill will force businesses to abandon legitimate tax deductions because the IRS can rule deductions do not have legitimate business reason. I think that one or both bills have substantial taxes on health care equipment manufacturers and drug companies.
The stimulus and health care bills have provisions to increase state taxes. The rats are not content to increase federal taxes. States are obligated to increase spending after the stimulus expires. The health care bills will push many costs to the states such as much larger Medicaid costs. Unless states revolt, state taxes are substantially increasing.
The unspoken lesson about the stimulus is its hidden cost. The focus is on short term job creation. The longer, enduring story involves increased taxes to pay for the stimulus and the explosion in government spending. We have only seen the positive side of the stimulus. Increased taxes will shut down private investment just when private investment should be expanding.
Agree also consider China what a joke
http://market-ticker.org/archives/1670-China-And-The-Environment-Go-Blow-Yourself.html
The idiots in Congress and the White House are busy piling bricks on a life preserver.
Our nation and our media is full of economic illiterates. Ditto this administration.
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