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View Full Version : Obamacare hurts small business--you know, the ones no one really built....



Elspeth
08-03-2012, 11:58 PM
The government can't build a business, but it can sure destroy one.

Small Firms See Pain in Health Law
http://online.wsj.com/article/SB10000872396390443545504577563423716368132.html?m od=dist_smartbrief#articleTabs%3Darticle

By LOUISE RADNOFSKY

Randall Tabor, who owns two Quiznos sandwich restaurants in Virginia Beach, Va., once aspired to triple the number of outlets he owns.

But after the federal health-care overhaul passed in 2010, Mr. Tabor says, he shelved those plans. The law requires that employers with 50 or more full-time workers provide health insurance to employees by 2014 or pay a penalty. Mr. Tabor, who employs 36 people at his two Quiznos shops and another restaurant, wants to stay small so he doesn't trigger the requirement.

Restaurants and retailers face some of the toughest changes now that the Supreme Court has kept the overhaul in place. These industries historically are among the least likely to provide insurance to workers.

Many franchisees of big chains hover around the threshold at which they will be required to start insuring workers or pay the penalty. With high turnover and a large percentage of part-time and seasonal workers, restaurant and retail operators must juggle several variables in figuring out whether they will cross the threshold.

McDonald's Corp. Chief Financial Officer Peter Bensen told analysts last week that the law will add between $10,000 and $30,000 in added annual costs to each of the 14,000 McDonald's restaurants in the U.S., 89% of which are franchisee-owned.

Burger King Worldwide Inc. expressed a similar concern. "Many of our franchisees will struggle with how to reconcile the financial implications…and will likely take other measures to reduce costs," Steven Wiborg, president of the chain's North American arm, said in a prepared statement.

he franchisees themselves are emerging as even more-vocal critics of the overhaul.

Operators of outlets including Subway, Burger King and Dunkin' Brands Group Inc.'s DNKN +1.46% Dunkin' Donuts last week met with more than a dozen lawmakers in Washington to complain about the law. Industry trade groups are also pushing the White House to soften the requirements through regulations that will spell out exactly how employers must comply with the law, known as the Affordable Care Act.

"I don't have the profit margin to pay for it," says Mr. Tabor, who doesn't offer health benefits to his Quiznos workers.

Some restaurant owners who offer limited health-benefit plans say they will drop them and pay penalties rather than provide the more expensive insurance required under the law. For employers above the threshold, the penalty starts at $2,000 a worker, although the first 30 employees don't count toward the levy.

John Motta, who owns 10 Dunkin' Donuts in New Hampshire and 10 in Virginia, said he offers workers a choice of two insurance plans and pays half the premiums. He is weighing whether to drop coverage but said the cost of the penalty could put him out of business in Virginia, where his stores are struggling.

Other franchisees are looking at ways to avoid the requirement by cutting workers' schedules so they work fewer than 30 hours a week—the law's definition of a part-time worker—since only full-time workers are counted toward the insurance coverage requirement.

Starbuck
08-04-2012, 11:33 AM
Obama may succeed where Japan, Germany, USSR, and Al Queda failed. He may actually bring America down to the point of being insignificant in world affairs.

Like Portugal. Or Bolivia.:apologetic:

LukeEDay
08-04-2012, 12:55 PM
The government can't build a business, but it can sure destroy one.

According to obama and Elizabeth Warren the government built all the businesses ...