Well the results in the past have always been stellar when they did this.....
If GOVERNMENT would just live within there means a lot of problems would be solved.
Fixed it for you!
Fixed it for you!
While I've never been a business owner, I have been a manager in a few businesses. From my experience, when minimum wage went up, it heralded in a cutback in the number of employees or a cutback in their hours of work performed. That was the result IF the businessman didn't want to increase his prices. If you had two or three similar businesses in an particular area and one chose to pay the extra minimum wage and charge more, they lost business to those that kept their prices low.
I agree, and between the $9 minimum wage and the $2000 penalty, per employee, for no insurance once you hit 50 employees, I came up with an incremental cost for employee #50 of $100,100 + wages. That's a huge barrier to entry into a bigger business.
The combined cost of new insurance and new minimum wage laws will be $5500 extra per employee or around $2.64 an hour, all of which will not include the increased payroll taxes each of these bring to bear, considering that currently $14872 a year is full time minimum wage that is nearly a 37% cost increase and that's not a laughing matter to companies.
Even stranger according to the news it was a $2000 penalty per employee for no insurance and a $3000 penalty per employee if you gave them insurance but it wasn't deemed good enough.
It's clearly just going to motivate businesses to give no insurance even if they do now so they are out a simple $2000 per person per year and let Obamacare cover us.
Under the current United States Tax code less than 50% of the people working in this country pay a net positive amount of taxes especially if they have single parent families they can get something around $5800 - $7000 a year in tax credits, money they get back in a refund even if it exceeds the total amount of tax due.
The problem is this will look like a great idea to many of them, just because they don't pay taxes doesn't mean they do not vote for president.
Belthos
Or you could just provide insurance ... it's not like Obamacare prohibits private insurance.
Very true. It doesn't prevent individuals from paying for their own health insurance either.
Mine costs me just over $4800 a year. It's sure to become more expensive as time goes by.
I need a home and at least one vehicle as well.
Should anyone who employs me be forced by the government to feed me, shelter me, pay my medical expenses? How about paying for a wife? a child or three?
Should anyone be forced to live without cell phones? smart phones? Cable tv, High speed internet. A flat screen tv so I can watch the cable, a laptop so I can view the internet?
My dog has vet bills too.
Would it be enough if they just paid me as agreed when I signed on?
Belthos
Is far more complicated than that. As mentioned, there is a fine if the insurance isn't adequate. I won't go into those details here.
At the same time the 2k per employee x 50 =100k/yr. Is not quite right either as a barrier to big business.
If you meet the minimum number of employees requirement, not exactly 50 but we can skip the details here, you are not required to offer all of the employees insurance. Rather you only have to offer insurance to employees that work on average 30 hours a week or more.
In my case of 100 employees, if properly managed so that most don't get over 30 hrs a week, I'll only have to offer insurance to say 15 to 25 of them. That doesn't seem so bad, but consider 25x150x12=45,000/year in last profits!
By the way, you can expect to see, if you haven't noticed it already, many employers limiting their help to 29 or less hours a week. Many National food chains are doing it already. Many min wave employees are going to have to get a2nd job to live. And remember, Obama is going to force them to buy insurance from the exchange or gave a tax penalty.
Sorry, ya got me started and I could go on forever about the suckaledge that is Obamacare.
How could a small business strugglin to make ends meet pay someone that much? Minimum wage is supposed to be a starting point for a person entering the work force for the first time. Minimum wage aint sposed to be a persons ultimate lifelong wage. But it will buy votes. And thats for shure!
check the numbers, Obama mentions a family with two children making a new $9/hr min. wage to get them out of poverty. If that family made $11/hr then they still would not be out of poverty by the govt. standards unless both adults were wage earners. BUT, if BOTH were wage earners at the current $7.25/hr then they would be above the poverty line and then a little! Very tricky speaking out the side of your neck Mr. Obama...
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I'll point out that the federal minimum wage hasn't really increased much over the last 30 years. It was $3.35/hr when I started working in 83, I think. That translates to $7.88 in 2013 dollars.
And remember that business owners are in business....to make money. Lots of people forget that. Any publicly traded company has to answer to investors, and so do many privately-held companies. It's not greedy of them to reduce labor expenses. I'll happily grant that illegal labor is not allowing the labor free market to work properly, but that's another issue.
And remember that business owners are in business....to make money. Lots of people forget that. Any publicly traded company has to answer to investors, and so do many privately-held companies. It's not greedy of them to reduce labor expenses. I'll happily grant that illegal labor is not allowing the labor free market to work properly, but that's another issue.
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