Saturday, August 29, 2009

Healthcare Plan is Also Negative for Jobs

The two main health care reform bills that Con­gress is currently debating each include some form of "play-or-pay" employer mandate: America's Afford­able Health Choices Act of 2009 (H.R. 3200) and the Affordable Health Choices Act. The House "Blue-Dog compromise," a version of H.R. 3200, also includes a play-or-pay employer mandate.

They force all employers to offer health insurance or pay a tax to the federal government. This will impact between 95 million and 105 million work­ers, and 509,000 to 1.4 million employers, including up to 1 million small businesses, according to D. Mark Wilson.

The mandates will cost businesses at least $49 billion per year and put 5.2 million low-wage workers at risk of unemploy­ment or reduced working hours, Wilsom estimates.. The prospect of fewer job opportunities in the future will put another 10.2 million workers at risk of slower wage growth and cuts in other benefits. Up to 382,000 low-wage unskilled workers are likely to lose their jobs

1 comment:

  1. As a small business owner myself, the government is essentially saying to me, "Please, please don't hire any skilled workers as full-time employees!"

    I will be more than happy to oblige, as I prefer not to be taxed/penalized out of business. Sounds like a fantastic way to jump start the economy.