OBAMA SIGNS $42B BILL HOPING TO ENTICE SMALL BUSINESS
By: Edward P. Shallow
In signing this new business loans legislation in and of itself is meaningless unless accompanied
By a reduction in the onerous regulations that are the reasons, small businesses are not expanding.
The regulations and the uncertainty of taxation to be determined in a lot of legislation already written into law must be finalized before any business will enter into expansion. The elimination of all onerous regulations that are stifling small business must be a pre-requisite of Congress if, the Tea Party republicans take-over the House of Representatives in November, the addition of the Senate would ensure a prosperous outlook for the business world.
Consider ObamaCare with its slew of new taxes, mandates, penalties and higher health care costs are placed squarely on the shoulders of private employers’.
The CEO of a mid size company in New Jersey recently wrote in the Wall Street Journal an op-ed piece titled, “Why I’m Not Hiring.” He reveals how much it costs him to maintain a valuable employee who has been with him for 15 years and performs well. She makes $59,000 a year on paper. In reality, she makes only $44,000 a year because $15,000 is taken from her thanks to various deductions and taxes all of which form the steep, sad slope between gross and net pay. While she pays nearly $2,400 for coverage, my company pays the rest–$9,561 for employee/spouse medical and dental. We also provide company paid life and other insurance premiums amounting to $153. Altogether, company paid benefits add $9,714 to the cost of employing her.When you add it all up, it costs $74,000 to put $44,000 in her pocket and give $12,000 in benefits.
With costs like that, it is no wonder he is not hiring more workers
To add insult to injury, ObamaCare exempts illegals from taxation but does not deny them health care.
Under ObamaCare a married couple, earning $32,000 will pay $6,000 in tax penalties for Medicare.
In keeping with my pledge to keep the people informed, here is a direct quote from Congressman Dingell relative to ObamaCare:
“It takes time to do the necessary administrative steps that have to be taken to put the legislation together to CONTROL the people.”
This just in, The Wall Street Journal reports, the annual cost of federal regulations in the United States increased more than $1.75 trillion in 2008, a 3% real increase over five years to about 14% of U.S. national income This cost is in addition to the federal tax burden of 21%, for a combined of 35% of national income. One out of every three dollars earned in the U.S. goes to pay for or comply with federal laws and regulations, and new policies enacted in 2010 for health care and financial services will increase this burden.
So much for aiding small business the 42B is another Obama fallacy.
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