Obama’s Tax and Health Plans WILL Hurt Businesses – And Ultimately American Workers

There’s quite a bit of confusion about Obama’s tax plan and its effect on small business and American workers.

John McCain stated during Tuesday night’s debate that most small businesses would see their taxes increase due to Barack Obama’s tax plan.  Barack Obama corrected him and said that only a small percentage of small businesses would see their taxes go up.  Both men are wrong.  And both are right.

Obama may or may not be right when he says that only a small percentage of small business would see their taxes go up under his economic plan – as it is written now (in at least its fourth version).  He hasn’t specified whether he will tax on the basis of net or gross, whether inventory counts as total part of total income, and so on (because the media will NOT do its job and press a liberal on economic details).  But regardless of how the specifics pan out, don’t forget that Bill Clinton similarly campaigned on a tax relief for the middle class economic plan – and he immediately taxes on the middle class early in his first term.  Given the high likelihood of a Democrat-controlled Congress that is eager to have massive government social projects, another such “undeclared” tax hike on the middle class is actually quite likely.

John McCain may have been incorrect in how he phrased his objection during the debate, but he is still right enough to win the argument if the facts actually come out.  He was probably wrong in saying that most small businesses would see their taxes increase in terms of the total number of businesses.  If you earn a living mowing lawns, and have no employees, or you have a business out of your home, you probably won’t be paying any higher taxes.  But keep in mind that a small business can have as many as 500 employees (up to a 1,000 in some industries) and be classified as “small.”  And such businesses are the real engine of our economy.  If a small business even employs a handful of employees, it is likely its revenues easily exceed Obama’s $250,000 figure.  It is these businesses which hire the most workers, and it is these businesses that Obama will start taxing.  It is also these businesses which will suffer the most even from a modest increase in their operating costs.  Many are skating on pretty thin ice as it is.  They can’t just sell more stock.

If Barack Obama raises the taxes for these small business owners, there will be layoffs.  And as his plan is right now, he is promising to raise their taxes.  Realize that we are in a tough economy.  It is harder to obtain loans.  Fewer people will be buying.  Small businesses will be struggling to survive, and if Obama does what he promises to do – particularly when he is going to force businesses to start paying health care as well – you WILL see layoffs.

Meanwhile, Obama is decrying John McCain for wanting to give tax breaks to big oil.  John McCain does NOT want just to give tax breaks to big oil (actually it was OBAMA who voted with Bush for the last big energy bill giveaway to big oil); he wants to lower taxes for ALL corporations.  Most nations realize that lowering taxes for corporations has resulted in corporations creating more jobs and more tax revenues, and that more corporations will be attracted to their country.  But not the United States: we have the second highest corporate tax rate as it is.  Obama wants to be “#1.”

Is that good for our struggling economy?  Your vote on November 4 will be your answer that question.

Another thing Obama wants to do is impose requirements for businesses to provide comprehensive health care for their employees or pay into a government fund.  Small businesses would be ostensibly exempted from the requirement, and would get a 50 percent health-care tax credit to help ease their cost of employee coverage.  People with pre-existing conditions – which often impose the largest cost on the health care system – cannot be denied coverage.  Businesses who hire such people will be forced to grin and bare it.

I wonder how many older workers will be fired in order to hire new – and less expensive – younger workers?  Under Obama’s plan, I’d sure be looking at my older employees as “potential health care time bombs” just waiting to explode.

Do you think that businesses and corporations will begin to pay very close attention to the health of the employees they hire, or do you think they won’t care about how much a new workers’ mandatory health care will cost?

Between raising taxes, and mandating expensive new requirements, many businesses and corporations will experience a genuine double whammy.  Do you think American businesses are made of money, or do you think they are vulnerable?  You will be answering that question in your vote on November 4.

One thing is extremely important to understand: Obama’s health care plan is modeled on the Massachusetts plan.  How are things going there?  Well, in the three years of the program’s existence, the tiny state is now already facing cost overruns of over $400 million.  Does that sound like a rousing success?  Massachusetts is facing a projected 85% increase in its costs by 2009 – which should set up a serious red flag that such programs are MASSIVELY underfunded.

You need to understand something else that emerged from Tuesday night’s debate: is health care a basic right?  Obama answered “yes.”  What does that mean?  It means that you have a duty to provide me with health care.  You have a constitutional, government-imposed duty to give me health care – no matter what – even if it costs you and your family to do so.  Am I an alcoholic who needs a liver transplant?  You owe me a new liver.   Did I sustain a brain injury riding my motorcycle without a helmet because I like to feel the wind in my hair?  Doesn’t matter.  I have a fundamental constitutional right to that liver, or to that brain surgery and all the long months of incredibly expensive therapy.  If I have a right to health care in the sense that Barack Obama believes, nothing else matters.

Do you understand how expensive this can all get?

Do you understand that Barack Obama is essentially talking about socializing a quarter of our economy?  Do you trust your government’s track record?

Your vote will be your answer to that question.

Barack Obama’s health care plan is estimated to cost $1.6 trillion in 10 years.  But that doesn’t take into account the very sort of cost overruns and cost increases that are even now plaguing the very state that Obama is basing his own plan upon.  What is going to happen to our economy given the extremely real likelihood that Obama’s massive national plan runs into similar issues?  Do you believe our economy is strong enough to bear the brunt of these massive cost increases?

Your vote will be your answer to that question.

Let me also point out something else: if businesses and corporations are forced to absorb shocking new costs, do you believe they will just swallow their profitability, or do you think they will pass their new costs onto you through higher prices?  Barack Obama keeps talking about his “95% of Americans will get a tax break” (which means that 30-40% of Americans who don’t actually pay income taxes will get an IRS-subsidized welfare check).  Will that check compensate for the higher prices you are likely to pay across the board for virtually everything you buy?

Again, your vote on November 4 will answer that question.

Don’t be too suprised if you vote yourself right out of a job.

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2 Responses to “Obama’s Tax and Health Plans WILL Hurt Businesses – And Ultimately American Workers”

  1. Wingman Says:

    The way it is going on Wall Streets [plural quite deliberate because it is worldwide] right now we need to protect small business. I follow economic world events because it gives you the clearest picture of home [forgive me the satire, but I simply cannot see the logic in the British blaming their disagreements with Iceland on George Bush, hence they don’t, though Obama will find a parallel for the idiots who support him] well, and it tells me we are in trouble anyway. Obama will screw it up so well nobody will ever be able to untangle the mess.

  2. Michael Eden Says:

    Obama and the Democrats want to do to our health care system exactly what they’ve done to our mortgage system. In the name of the poor minorities who can’t afford it, they want to make it available at everyone else’s expense. That’s the exact same mentality that led to the crash of the mortgage market, and they’re going to do it again.

    And right when our economy is already vulnerable.

    Super Depression (that’s my quickie name for the Depression that will be worse than the Great Depression), here we come.

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