Obamacare

Obamacare to cause massive job losses across food service industry

Tuesday, September 18, 2012 by: J. D. Heyes
Tags: Obamacare, food industry, unemployment

eTrust Pro Certified

Delicious Pin It
(NaturalNews) It's been labeled as one of the primary reasons why job growth in the U.S. continues to lag, but apparently no one at the White House is listening.

Obamacare is set to claim another casualty - the food service industry, one that is known for its low-paying positions and tight profit margins.

Granted, franchisers of all stripes were grumbling about the negative financial effects forced upon them by the massive Obamacare law, with its plethora of rules and regulations. Most attendees to the recent International Franchise Association in Washington, D.C., were complaining about all new federal regulations, but they emphasized Obamacare primarily, the Washington Examiner reported.

Initially, said David Barr, an Atlanta-area Taco Bell and Kentucky Fried Chicken franchiser told the paper, most business owners believed the early reports saying Obamacare would impact them hard were overblown. "They had their head in the sand," Barr said.

Costs to double, profits to be cut in half

But then he pulled out his PowerPoint presentation that showed how funding Obamacare will cut his, and those of his fellow small business owners,' profits in half overnight.

"With simple math the small business folks understood, he spelled out that their only choice is to slash employee hours so they aren't eligible for company-paid health care or stop offering insurance and pay the $2,000 per employee fine," the paper reported.

Stop right here. You need to understand that this is coming from the mouth of a man, a real business owner, who actually has to make payrolls every two weeks, not some partisan hack trying to score political points. He's telling you that the impact of Obamacare is not only real but that it's getting ready to make an already bad employment situation even worse. That's important to note, given the administration's continued insistence that the law is not going to hurt employment or small businesses.

Okay, let's continue.

The paper said Barr has 23 stores with a total of 412 employees. Of that number, about a quarter of them - 109 - are full-time, and of those, he provides 30 of them with health insurance.

Barr said he pays 81 percent of the Blue Cross-Blue Shield policy for those employees, or $4,073 of the $5,028 in annual premium costs for individuals (more for those with a family plan). That adds up to about $129,000 a year; employees, by comparison, pay $995 a year.

Enter Obamacare.

Under the law, Barr is forced to provide health insurance for all 109 full-time employees, at a cost of $444,000 - or two and a half times more than his current costs. That's an increase of a whopping $315,000, or just more than half his annual profit, after expenses, or about 1.5 percent of sales (before you criticize, ask yourself if you'd be willing to cut your take-home pay in half).

Needless to say, Barr says he's "not paying $444,000."

Higher costs to businesses will mean fewer jobs, period

So, failing to provide health insurance for his 109 full-time employees will result in a penalty under the wonderful provisions of Obamacare. But the federal fine will amount to about $158,000, or $29,000 more than Barr is currently spending but which is the lowest possible cost to his business under the Obamacare provisions.

So he now sees that figure as his cap; he'll either cut worker hours (which will raise the under-employed figures and further dampen consumer spending and growth) or replace them altogether with machines (which will worsen the unemployment rate) in order to get his costs down. A third option is to dump his workers on the public health exchange and pay the fine.

"Every business has a way to eliminate jobs," he said, "but that's not good for them or me."

There's more. Barr says in his experience, most low-wage workers he would have to cover under Obamacare won't take it because their share at $995 is too high. That means those that the law was set up to help likely won't see any benefit at all, he says.

Sources:

http://washingtonexaminer.com

http://www.usnews.com

http://www.usnews.com

Get breaking news alerts on GMOs, fluoride, superfoods, natural cures and more...
Join over four million monthly readers. Email privacy 100% protected. Unsubscribe at any time.


Have comments on this article? Post them here:

comments powered by Disqus

Take Action: Support NaturalNews.com

Email this article to a friend

Permalink to this article:

Reprinting this article: Non-commercial use OK, cite NaturalNews.com with clickable link.

Embed article link: (copy HTML code below):
Most Popular
Today | Week | Month | Year

See all Top Headlines...



GET SHOW DETAILS
+ a FREE GIFT

Now Available at ShopNaturalNews.com

O3 Essentials OraJuvenate™
A powerful, cleansing dental cream for maximum oral/dental health.
New Cancer Solutions
Over 3 hours of content covering today’s best cancer tests, how to kill cancer cells and the best diets and exercise routines.
Freeze-Dried 100% Organic Whole Corn
Our freeze-drying method preserves taste, texture and nutrients better than any other food preservation method ever invented.
Fenix TK35 Flashlight
Tough, waterproof, extremely bright and it’s touted to throw an 800+ lumen beam more than 1,000 feet into the night.
Inca Treasure Smoothie Pack
This pack of our four most popular superfoods from South America is the perfect combo pack for smoothie lovers.
Pink Himalayan Salt
This salt delivers significant levels of magnesium, zinc and selenium, with trace levels of dozens of other elements.
Pinhole Glasses - Aviator Style
Pinhole glasses are becoming famous for helping people improve their vision without the risks of laser surgery.
Oxy-Rich Facial Serum
O3 Essentials Jojoba Oxy-Rich Facial Serum is cellular nourishment for your skin. Helps smooth fine lines while enhancing tissue elasticity.
Freeze-Dried 100% Blackberry Halves
Our freeze-dried blackberry halves are grown in Serbia under strict organic standards.

Also on NaturalNews:

Health Ranger Videos
Activist music
CounterThink Cartoons
Food documentaries
FREE Special Reports
Podcasts
Colloidal Silver

Advertise with NaturalNews...

Support NaturalNews Sponsors:

Advertise with NaturalNews...

Most Popular Stories

Flu shot kills 19-year-old, but vaccine industry still has total immunity against lawsuits
Here's a nutty fact: Eating more tree nuts lowers the risk of all-cause death by up to 20 percent
Six important facts you're not being told about lost Malaysia Airlines Flight 370
Malaysia Airlines Flight 370 now clearly a government cover-up: All evidence contradicts official story
10 other companies that use the same Subway yoga mat chemical in their buns
BLM fracking racket exposed! Armed siege and cattle theft from Bundy ranch really about fracking leases
High-dose vitamin C injections shown to annihilate cancer
U.S. treating meat with ammonia, bleach and antibiotics to kill the '24-hour sickness'
USDA to allow U.S. to be overrun with contaminated chicken from China
Vaccine fraud exposed: Measles and mumps making a huge comeback because vaccines are designed to fail, say Merck virologists
Battle for humanity nearly lost: global food supply deliberately engineered to end life, not nourish it
Diet soda, aspartame linked to premature deaths in women

25 Amazing Facts About Food

This FREE downloadable report unveils a collection of astonishing and little-known facts about the food we eat very day. Click here to read it now...

 

Resveratrol and its Effects on Human Health and Longevity - Myth or Miracle.

Unlock the secrets of cellular health with the "miracle" nutrient Resveratrol Click here to read it now...

 

Nutrition Can Save America

FREE online report shows how we can save America through a nutrition health care revolution. "Eating healthy is patriotic!" Click here to read it now...

The Healing Power of Sunlight and Vitamin D

In this exclusive interview, Dr. Michael Holick reveals fascinating facts on how vitamin D is created and used in the human body to ward off chronic diseases like cancer, osteoporosis, mental disorders and more. Click here to read it now...

Vaccines: Get the Full Story

The International Medical Council on Vaccination has released, exclusively through NaturalNews.com, a groundbreaking document containing the signatures of physicians, brain surgeons and professors, all of which have signed on to a document stating that vaccines pose a significant risk of harm to the health of children. Click here to read it now...

Health Ranger Storable Organics

GMO-free, chemical-free foods and superfoods for long-term storage and preparedness. See selection at www.StorableOrganics.com



Recommended Resources On:

Natural News trends
Health Ranger news
Natural News GMOs
Mike Adams tracker
Natural News photos
Natural News Global
Natural News in focus
Natural News connect
Natural News shocking stories
Natural News radar
GMOs
Quackwatch
Vaccines
Health freedom
Dr. Paul Offit

This site is part of the Natural News Network © 2014 All Rights Reserved. Privacy | Terms All content posted on this site is commentary or opinion and is protected under Free Speech. Truth Publishing International, LTD. is not responsible for content written by contributing authors. The information on this site is provided for educational and entertainment purposes only. It is not intended as a substitute for professional advice of any kind. Truth Publishing assumes no responsibility for the use or misuse of this material. Your use of this website indicates your agreement to these terms and those published here. All trademarks, registered trademarks and servicemarks mentioned on this site are the property of their respective owners.

eTrust Pro Certified Android app on Google Play

Sign up for the FREE Natural News Email Newsletter

Receive breaking news on GMOs, vaccines, fluoride, radiation protection, natural cures, food safety alerts and interviews with the world's top experts on natural health and more.

Join over 7 million monthly readers of NaturalNews.com, the internet's No. 1 natural health news site. (Source: Alexa.com)

Your email address *

Please enter the code you see above*

No Thanks

Already have it and love it!

Natural News supports and helps fund these organizations:

* Required. Once you click submit, we will send you an email asking you to confirm your free registration. Your privacy is assured and your information is kept confidential. You may unsubscribe at anytime.