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  • The 3 Biggest Ways Obamacare Kills Jobs

    Obamacare’s provisions will result in significant job loss across America. Below is a summary of how Obamacare’s provisions will harm job growth:

    1. Employer mandate. Obamacare requires all businesses with 50 or more full-time employees to provide health coverage for their workers or pay a $2,000 penalty for each employee after the first 30 workers.The employer mandate creates incentives for businesses to avoid higher costs by, for example, hiring part-time employees instead of full-time employees, since businesses will not be penalized for failing to provide health insurance to part-time employees.In addition, as Heritage research shows, “Obamacare hurts less skilled workers. It raises the minimum productivity required for them to hold a full-time job, particularly workers with families.” The cost to an employer of hiring a full-time worker increases to at least $10.03 per hour and for those with family health coverage, it is at least $13.75 an hour. Research shows that “a third of uninsured workers earn within $3 of the minimum wage and therefore have a higher risk of losing their jobs because of an employer mandate.”Businesses can also avoid penalties by keeping the number of employees under the mandate threshold of 50, which further discourages creating new jobs.
    2. New taxes and regulations. Obamacare adds tons of taxes on employers. These additional costs reduce the ability to hire workers and could even prompt layoffs. One particularly damaging tax will be the 2.3 percent excise tax on medical devices. Research has shown that, “Under reasonable assumptions, the tax could result in job losses in excess of 43,000 and employment compensation losses in excess of $3.5 billion.”Obamacare also, for the first time, applies the Medicare payroll tax to high earners’ investment income, including capital gains. Taxing capital reduces economic growth and investment.
    3. Future costs and regulations are unpredictable. A recent study found that 33 percent of business owners cited new requirements in Obamacare as either the biggest or second-biggest obstacle to hiring. In addition, Dennis Lockhart, the president of the Federal Reserve Bank of Atlanta, said, “We have frequently heard strong comments to the effect of ‘My company won’t hire a single additional worker until we know what health insurance costs are going to be.’”
    Posted in Obamacare [slideshow_deploy]

    15 Responses to The 3 Biggest Ways Obamacare Kills Jobs

    1. Bobbie says:

      Because the President refuses to acknowledge the serious consequences by his forced intrusion in clear violation of the people of America, shows his intent. Please save America(ns!)

      • Rob says:

        My employer had 150 employees when Obama took office. He laid off 101. He also started a new company in a related field and maintains that company below 49 employees. We have more demand for our products than we can supply with only 49 employees but he will not expand.

        • Bobbie says:

          It's all by government design! Sounds like your employer is doing all he can to endure or rise above the abuses of government?!

          Obama's health care is stealing from every self reliant American, business owners, employees etc. making it untrustworthy when the minority (people obama claims insurance need over care itself) would catch on real quick if there was self initiative which only comes WITHOUT GOVERNMENT coercion or influence!

        • John says:

          Knee-jerk reactions such as the major restructuring you described tend to fall apart once the economic impact (inability to generate new sales/revenue/profits) outweigh the costs associated with covering his employees with insurance. He may decide to move jobs overseas and I bet he is thinking about it. Would have been great if we could have put a public option in healthcare reform that would have allowed employers to opt-out of health insurance altogether.

        • Mike says:

          what does this have to do with Obama being president? when Obama took office nothing has happened yet, his efforts weren't put to effect for a while. Sounds like your employer had his reasons for laying off people, at the same time when Obama took office, the whole country went through economical depression. Does not mean that he is the cause of that depression.

      • Logic says:

        This would give insurance to poor people, this article is clearly biased! Healthcare in America is already in ruins and the poorest people cannot afford the most basic care because of the lobbyists and privatization of insurance as for profit businesses. Obamas plan is the beginning of equal healthcare, less competitive pricing meaning cheaper premiums, and overall stability for America as a top nation on the health frontier.
        1) referring below – your employer isn't laying people off because of Obama. This was just passed and the details aren't finished, how could you honestly believe your employer is laying people off when no one knows what insurance will in fact cost?
        2) The rich should in fact be equally taxed as everyone else for Medicare. They can handle taxes better than the poor. The fact is that it "could" result in job loss excuse of taxes, but nothing is for certain, except the fact that the tax is implemented for a good reason – to balance costs and make healthcare cheaper!
        3) future costs are unpredictable, but that is the case every single day as the system stands now. Obamacare is an attempt at making these costs more stable and predictable. For simple instance, and I am sure others have had the same experience so long as you're in the middle or lower class – how many times has my healthcare provider risen premiums in the past year? 3 times. Coverage changes constantly. And guess what? Insurance providers are making record profits each and every year.

        So in conclusion, this is not an attack on employers but an attack on the "free enterprise" that is applied to something that should be universal and affordable – health insurance.

    2. sbenard says:

      I have begun referring to it as what it really is: Obama's Tyrannycare!

    3. Chip Martin says:

      This job killing monstrosity has to be repealed. It's time for the house to defund and repeal Obamacare. Quit talking about it and get it done!

    4. cwo, ret. mil. says:

      our only hope is for the GOP to come up with a viable alternitive in 2012, although right now my dog Tara has more common sense and concern for this country than the current leadership.

    5. @babyspittle says:

      This isn't even good propaganda, Heritage.

    6. American says:

      So how would this affect all the businesses that are outsourcing jobs instead of hiring Americans? Will I actually be able to talk to someone in english?

      • Rich@33000.00 says:

        If big companies need not pay insurance for products made in other countries, or customer service, why would they pay an American when they save by outsourcing. Maybe employers should be taxed for jobs they've outsourced. I'm sure if Romney lost every cent he has he would feel entitled to the same benefits he paid into the American System at a lower rate than the folks making under $35,000.00.

    7. Don says:

      Is this the same Heritage group that originally proposed "Obamacare" twenty years ago? The same Heritage "Obamacare" plan that Republicans have been touting up until Obama proposed it?

      But I have to agree that businesses should be out of the health care/insurance business. Great case for single payer in my opinion.

    8. All insurance agents will be losing our jobs in 2014. Navigators on the exchange do not need to be licensed agents. We are independent small business people advocating for individuals against the carriers and understand how benefits work. W
      e also understand the claims process how to get individuals paid but were completely left out of the pppca bill. This is a job killer read the fine (yes I have read all 2000 pages). Groups under 50 will only need coverage for full time employees. Lots of people will become contract labor or have to carry two full time jobs. Part time is defined is under 30 hours a week. Many will see an income cut. Carriers only way to deal with pricing is to reduce the provider networks to compete. Your only option for service will be a call line. We need to start writing our congress men and women democratic and republican. This isn't about Partisan politics. Jobs will be lost. We need to get this bill fixed before it goes into affect. We will all be hurt by this…

    9. Mike says:

      You guys should be happy that Obamacare is around because there are US citizens that could be dead because they have no health care coverage. There will always be a cost with something like this like the "tax on medical devices", corporations that purchase these medical devices are more than wealthy enough to pay a 2% tax on a medical device, they spend millions on MRI equipment and dialysis equipment. I don't know one person that became unemployed directly related to Obamacare, and if your employer is doing this then he is a person that will take advantage of any government loophole to not pay anything extra and not just because of Obamacare.

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