Effects of ObamaCare 1 Year
Happy Birthday, Obamacare? What It Really Means for American Businesses
|For starters, Obamacare creates burdensome new paperwork for business owners through its requirement that they file a 1099 form with the Internal Revenue Service for all purchases above $600… Altogether, Obamacare includes more than $500 billion in new taxes, which, as Heritage analyst Curtis Dubay writes, “will slow economic growth, reduce employment, and suppress wages. These economy-slowing policies could not come at a worse time. [Obamacare] tax increases will impede an already staggering recovery.”
Obamacare also creates penalties for firms with more than 50 workers that do not provide employees with a level of health coverage deemed adequate by Washington. This discourages small businesses from expanding. As Heritage analyst Brian Blase writes, “The economic effects of the employer mandate will likely be lower profits for many businesses, lower wages for millions of workers, increased unemployment, and higher prices for many goods and services.” Since employers will be required to increase the amount they compensate workers in the form of benefits, they will reduce the amount of compensation they provide as wages, since, after all, “Productivity gains, not acts of Congress, are required to increase worker compensation over time.”
Moreover, Blase writes, “businesses that conform to the mandate will face compliance costs. Therefore, many businesses will have less profit with which to compensate their employees and shareholders, resulting in lower wages for employees and diminished portfolios for shareholders.” To make up for cost increases, businesses will likely increase prices for goods and services…
Heritage’s Center for Data Analysis simulated the overall effects of the new law on the economy and found that Obamacare would result in reduced investment in the U.S. economy and a loss of 670,000 job opportunities every year. While liberals try to sell the ever-unpopular Obamacare to the American people, a look at the bigger picture reveals that, no matter how you slice it, the new health care law is an economic disaster.