Posted on 11/11/2012 7:11:37 PM PST by tobyhill
The CEO of popular pizza chain Papa John's says his employees may face reduced hours and he expects his business costs to rise because President Obama's re-election most likely insures the president's health care reform law will be implemented in full.
NaplesNews.com reports John Schnatter made the remarks to a small group at Edison State College's Collier County campus the day after the election.
Schnatter, who supported Mitt Romney in the election, said all Americans having health insurance under ObamaCare is a good, but estimates the change will cost Papa John's $5 million to $8 million annually.
Schnatter estimated that these rising costs could adversely affect his workers. Since only full-time employees working 30 hours or more must be covered under the new law, he said he expects franchise owners will be forced to cut employees' hours because they can't afford the costs of health insurance plans.
(Excerpt) Read more at foxnews.com ...
I will only order from Papa John’s from now on.
Employers started offering health insurance benefits about 60 years ago, not because they were expert in medical issues, but as a way to get around wage and price controls implemented by government. They could not offer higher wages to attract the best workers ….so they offered health insurance benefits. The government (IRS) ruled that workers didn’t have to pay income tax on health insurance benefits. The Government (elected members of Congress) passed laws to allow businesses to consider the cost of health insurance to the employer as a business related expense. This system became the norm.
Next we will delve into the “Law of Unintended Consequences”
..........or...”We Are From THE GOVERNMENT, and we are here to Help You”
If they don’t take positive action now, they will have a lot of “reacting” to do later. If you know you have a big bill coming in 9 months, and don’t start saving for it until the day before it’s due, you are in a bit of a fix. Plus, who knows what other Executive Orders the “Won” will put out - he might decide it looks bad for all the layoffs and cutbacks and decree that they don’t take place...
“If you cut them all back to 29 hours, then you will have to hire 15 more part-time employees to keep your manpower hours at 1600/week. This will drop the U3 unemployment rate.”
I had an older auditor tell me that Portugal did this decades ago to combat unemployment; they simply mandated that people work something like 30 hours per week. I believe this was after the end of the Angola war, when many Portuguese returned from the colonies to an already-high unemployment rate.
Now that businesses know ObamaCare’s a certainty, “the law of the land,” they have to plan accordingly and they are.
ObamaCare isn’t the only thing they’re going to be adjusting for either. There will be rising operating costs due a host of other goodies the administration has in store. Taxes, fees, regulations, mandates, etc.
These are very difficult, uncertain times for employers. How do they plan for whatever tomorrow’s executive orders will be?
Sadly, I think a lot of the smaller ones who’ve been waiting for this election’s outcome will simply say “screw it”, shut it down and walk away.... The larger ones will juggle as best they can and try to survive.
We'll get taxpayer funded universal healthcare when the business sector demands it. With rising healthcare coverage costs, that time is not too far off, regardless of Obamacare.
As for mandating that individuals buy health insurance, that should obviously dropped ASAP, but only at the time a new law is passed that relieves hospitals and ER's from the obligation to treat individuals who have no means to pay. Passing the cost on to the rest of us is unacceptable.
I think reason for that $2 million instead if $1 million that they rgu over in commercial is cuz Peyton bought 21 franchises around Denver :)
Because their full time workers as of 2013 will be the baseline for calculating their penalties. If they were to wait until 2013 when the fines start, they would be hosed.
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