This morning the “speech that will change the world” has been chewed almost to death. I personally didn’t watch it. I can’t watch the presidents speeches and stay sane. I like my TV and the urge to throw a box of Lincoln Logs through it is sometimes almost overwhelming. So I watched reruns of the Big Bang Theory with my kids.
From what I can tell there wasn’t a lot new in the speech. There was some mention of tax cuts (on social security – which of course isn’t in trouble at all) along with the obligatory spending proposals, of course. This president has never met a spending proposal he can’t inflate. One of the most interesting things that hasn’t been covered, at least to me, is the regulatory morass that has been perpetrated by the democratic Congress since 2006 and added to by this president who never, it seems, met a regulation he didn’t like. Regulations that impede business growth and expansion, that kill jobs, that make NO SENSE at all. Regulations that are redundant, restrictive and repulsive in their intrusion into peoples lives. The American people want government out of their businesses, out of their lives and out of their bedrooms.
But the most stunning circumduction of the speech was the absence of any mention of Obamacare. This is the one piece of legislation that is killing job growth and stifling consumer spending. According to the Americans for Tax Reform site (I would have use a more neutral sites but the left really doesn’t want to talk about this issue)
2. Obamacare Individual Mandate Excise Tax (takes effect in Jan 2014): Starting in 2014, anyone not buying “qualifying” health insurance must pay an income surtax according to the higher of the following
|1 Adult||2 Adults||3+ Adults|
|2014||1% AGI/$95||1% AGI/$190||1% AGI/$285|
|2015||2% AGI/$325||2% AGI/$650||2% AGI/$975|
|2016 +||2.5% AGI/$695||2.5% AGI/$1390||2.5% AGI/$2085|
Even worse is the news from the CBO (Congressional Budget Office) that,
According to the CBO, by 2016, the cheapest family health care plan that Americans will be required to buy under the law will cost $12,000 per year. The average family plan will cost $15,200. A family of four making $88,201 per year—or more than 400 percent of the poverty level—will not receive any federal subsidy to purchase such a plan. They will pay taxes, however, to subsidize the health care purchases of people earning less than 400 percent of poverty.
“That means that if the reduction in the labor used was workers working the average number of hours in the economy and earning the average wage, that there would be a reduction of 800,000 workers,” Elmendorf said in an exchange with Rep. John Campbell
While those in the Budget Office say that these lost jobs will be from people not having to work for benefits, how else are they going to be able to afford even the “government exchange health care”? Hmmmmmmmm.
By 2016 for just myself, my spouse and my baby who will be 21 years old and most likely a student, thus on our insurance, it will cost us $1390 or 2.5% AGI. So is that a month, a year, and 2.5% of what, our income? If it’s a month that’s more than one and a half of my mortgage payment. As the second quote shows a family would face the prospect of paying. for the least expensive policy – $1267 a month, for health coverage. Much more I’m sure if there are any health issues. I’d have to have a two full time second jobs just to pay for this. So if I don’t want to pay a surcharge I have to find an employer who will still offer benefits. Many employers who will, if they can, simply pay a fine will and them move on. Why have an HR department with 10 people,4 of whom deal with insurance issues, when you can pay a fine to the government and move on? A three thousand dollar fine per worker or employees making 50- 80 thousand dollars a year. Bottom line, the fine is cheaper and since we’re going to be minus roughly 800, 000 jobs people won’t have the luxury to chose an employer who offers benes. We’ll just have to take what we’re given. What employer wants to deal with insurance companies any way? Talk about a morass made in hell.
If you really want to have some fun go to the CBO website and click on;
The Patient Protection and Affordable Care Act’s Effects on Employers’ Decisions to Offer Health Insurance
then take a look at pages 9, 10, 11 (all of it is very informative- i.e. clear as mud). Remember this is the simplified version for us rubes and little people. You know actual tax payers.
3. Obamacare Employer Mandate Tax (takes effect Jan. 2014): If an employer does not offer health coverage, and at least one employee qualifies for a health tax credit, the employer must pay an additional non-deductible tax of $2000 for all full-time employees. Applies to all employers with 50 or more employees. If any employee actually receives coverage through the exchange, the penalty on the employer for that employee rises to $3000. If the employer requires a waiting period to enroll in coverage of 30-60 days, there is a $400 tax per employee ($600 if the period is 60 days or longer). Bill: PPACA; Page: 345-346
So the one piece of legislation hated by the majority of Americans, that’s killing the economy BEFORE it’s even implemented, that is stifling job growth and actually causing layoffs wasn’t included in the speech. And nobody in the media or Washington is talking about this as of 9 am CDT? Really?
Hey you’se guys. There’s an elephant in your living room and it’s excreting all over your couch! Anybody want to do something about that? Make a statement?
Good luck with that. You’d better hope no one feeds it fiber! I guess this is one of those shovel ready jobs “his highness” was talking about.