Thursday, August 6, 2009

"PELOSI JOBS TAX" PAIRS UP WITH OBAMACARE

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Last week, the Wall Street Journal noted that the House health care bill places an 8 percent payroll tax on small businesses with payrolls of $400,000 or more that do not provide health insurance for their employees.

In addition, individual workers would have to pay a 2.5-percent tax on gross income if they do not buy the health insurance the government mandates.

What people do not realize is that whether an employer offers health benefits is generally a function of how badly the employees want those benefits and if they are willing to forego wages in return.

Labor and health economists both have documented that health benefits are essentially part of an employee's compensation -- employers do not pay for that, workers do.

That is why minimum-wage workers in small businesses will be hit the hardest -- they will either be laid off, or in many cases not get the job because their skills are too marginal to afford the cost of a Cadillac health plan.

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