Healthcare ("What's Everyone Talking About?" Update)
by chas1299, Window Shopper
- Created: March 26, 2010, 8:51 am
The government is going to destroy thousands of businesses. The House bills re healthcare reform under consideration result in disastrous disparate treatment of businesses and small business owners. Thousand of businesses will go under, leading to massive unemployment. Let me explain what everyone seems to be missing.
The legislation under consideration mandates businesses with a payroll of $400,000 or $500,000 or more to pay insurance premiums for employees. The size of a compan;s payroll is not an indicator of whether the company makes money or the size of its profit margin. Remember, regardless of the size of a compan-s payroll some barely break even, some make a modest profit.
Furthermore, businesses that are labor intensive, typically in service industries, that is with more employees rather than fewer, will be decimated by this legislation. Let me provide an example. Assume you have a company, like mine, with 150 employees all who make between $8 and $10 per hour, that generates about $150,000 in profit, and you have a company of 20 employees that generates $150,000 in profit.
The result of the healthcare legislation is that a company like mine will be mandated to pay $360,000 ($200 per month per employee for insurance premiums) per year in insurance premiums. Thus putting me and others like me into bankruptcy immediately. The company with 20 employees will pay $48,000 per year. They might survive.
The clear point is that the proposed healthcare legislation is worded so that small businesses with many employees will be crushed. That will be disastrous to our country and I ca-t imagine this is what is intended.
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