The $100,000 Raise

Picture this, tomorrow you march into your boss’s office and demand a $100,000 raise.  What do you think?  Would you walk out of that office with a job?  What if you demanded a $2,000 or $3,000 raise?  Perhaps that is more likely.  But it should be no shock that companies have been laying of tens of thousands of workers now that Obamacare is the permanent law of the land.

Starting in 2014, companies with 50 or more employees  must offer their employees corporate health insurance plans, or employee #50 will cost the company an additional $100,000-$150,000 in taxes.  That’s $2,000-$3,000 per person.  So if you are employee #50, you may want to brush up your resume.  In fact, if you are employee 50-100 you may be starting to sweat just a little bit.

So why won’t companies simply offer their employees health insurance?  Probably because with a price tag of $16,000 per family for a corporate plan, it simply isn’t economical.  Companies could pay their employees the $5,000 or so for a private plan through a defined contribution benefit package as Sears, Darden Restaurants and others are opting to do, but that does not save them from the $100,000+ tax.  Imagine being able to get money from your company to go out and buy your very own tailored healthcare plan where single men don’t have to pay for maternity and women don’t have to insure against testicular cancer.  Unfortunately, the insurance lobby was able to convince Obama that personal choice is a bad idea.

I’ve heard a lot of people suggest that companies who are laying off en masse are doing so only to protest the Obama re-election.  Yes, that’s right, companies are intentionally hurting themselves to show Obama how upset they are.  Really??  That would be like suggesting a pro-choice lesbian would get knocked up and have a baby to protest a Romney win.

It’s more like this, if a company can’t afford to pay $16,000 per family in health insurance coverage, they just might lay off 200 workers in order to save between $400,000 and $600,000.  By the way, most small businesses with 5o employees can’t afford  $100,000 in additional taxes.

If you think companies are just bitter and that is why job losses are up 78,000 since the election, consider this: with Obamacare companies just saved $156 million by laying off those 78,000 workers.  Obama is incentivizing layoffs by taxing employment.

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Obama Promises More Bailouts

Think Obama saved Chrysler and GM?  Look out, he wants to do the same thing for every American business.  In Colorado today, Obama touted the GM recovery and then said he wants to do the same thing for every industry.  Obama repeated the claim that GM is #1 again because of him.  Of course, that isn’t true anymore, but when did truth ever stop Obama?  Obama, who invested billions in taxpayer stimulus dollars on foreign countries, claimed that Romney didn’t have private sector experience.  He said instead that Romney had only invested in companies, some of which were pioneers of outsourcing.  Of course, Obama is referring to his previous campaign lie that Bain companies outsourced jobs while Romney was still there, a claim that has been debunked by The Washington Post and others.

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Obama: Let’s do it again

So what was so great about what Obama did for GM?  Do we really want him doing that for every industry?  For example, do we really want him taking taxpayer dollars to buy stock in major corporations in every industry?  In order for the US to break even on the GM bailout, Obama would need to sell the government owned GM stock at $53 per shareIt is currently at about $20.  I don’t know about you, but if I had a choice I would fire Obama as my financial adviser.  In fact, Obama’s “success” with GM translates to GM’s market share being at a 90 year low.

Despite Obama throwing billions of taxpayer dollars at GM to produce what he calls a miraculous recovery, they still went into bankruptcy.  In fact, GM’s unavoidable bankruptcy may have had more to do with their survival than Obama’s foolhardy stock purchase with our tax dollars.  So what would the difference between Obama’s plan and Romney’s plan have been?  Billions of dollars in taxpayer money.

GM’s recovery has resulted in the loss of 1/3rd of their brands, 900 dealerships, 13 plants, and 22,500 jobs.  Obama wants to repeat this “success” with every other American industry.

Throw in the emerging retirement scandal where the administration stole 20,000 pensions in order to pay off union supporters, and GM is a perfect example of exactly what we DON’T want for every other industry in America.  In fact, all other things being equal, Obama’s promise to repeat the GM fiasco with every other industry in America is a perfect reason to make sure he never has the chance.

If you want Obama to take your tax dollars and invest them in stocks that you personally wouldn’t buy, then by all means re-elect him.  The too big to fail industries in corporate America could use the help.  Unfortunately, Obama’s only options for a bailout of every American industry are more China debt or higher taxes on every level of income.

At least he’s not promising to do what he did with Chrysler to every American Industry.

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