Archive for the 'Universal health care' Category

Small Business Advocate Poll: How will Obamacare impact your small Business?

The Question:
The Supreme Court has upheld most of Obamacare, how will this decision impact your small business?

44% - This will hurt my business

4% - This will be good for my business

42% - I don’t know, but I’m afraid of Obamacare

10% - I don’t know, but I’m not worried about it

My Comments:
Obamacare has survived a Supreme Court challenge and been judged to be constitutional. We wanted to know what our small business audience thought about that, so last week, in our online poll, we asked this question: “The Supreme Court has upheld most of Obamacare, how will this decision impact your small business?” Here’s what we learned.

Just 4% of our sample said, “This will be good for my business,” while 10% said “I don’t know, but I’m not worried about it.” But 44% reported that Obamacare, “will hurt my business,” and 42% allowed, “I don’t know, but I’m afraid of Obamacare.”

Obamacare is the law of the land, unless and until the next Congress and a new president repeals it. In fact, part of the narrative in Chief Justice Roberts’ ruling indicated that the ultimate decision about such a sweeping law should rest with the electorate.

There are 26 million small business owners in the U.S. and another 70 million small business employees. That’s a lot of votes that could be influenced by the anti-Obamacare sentiment - 86% - demonstrated in our poll.

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I’ve talked to several people in the last couple of weeks on the impact of the Supreme Court’s Obamacare decision on the economy, including Michael Reagan, son of Ronald Reagan and author of The New Reagan Revolution; and Barbara Weltman, small business attorney and author of J.K.Lasser’s Small Business Taxes. Click on the links below to download or listen.

Gobsmacked by SCOTUS with Jim Blasingame

Michael Reagan on the Supreme Court ruling on Obamacare with Michael Reagan

Obamacare my be constitutional, but businesses still uncertain with Barbara Weltman

What will Obamacare cost your small business? with Barbara Weltman

Check out more great SBA content HERE!

Take this week’s poll HERE!

Gobsmacked!

Gobsmacked!

That’s how I felt when I heard the news about the Supreme Court ruling on Obamacare. It’s not that I believed the law would be found constitutional - I gave up trying to predict the high court a long time ago.

And it wasn’t even that Chief Justice Roberts, not Justice Kennedy, was the swing vote. Grace-Marie Turner, president of the Galen Institute, health care policy expert and frequent guest on my radio show had warned us more than once not to be surprised if this happened.

The part that gobsmacked me, and basically everyone else, was the method that Roberts used in order to find a way to render Obamacare constitutional, which was nothing short of contrived (I promise, I’m using this word as the best way to describe his decision, not to be pejorative). Writing for the majority, Roberts divined that the individual mandate, the financial linchpin of the law and the most controversial element, is a tax. And since the Constitution gives Congress the power to tax citizens, the mandate is constitutional.

All of this would be well and good, except that for three years, the namesake of Obamacare and all of its other proponents vociferously argued that the individual mandate is a penalty, and absolutely NOT a tax. In fact, the high court ruling actually included that Congress does not have the right to expand the interpretation of the Commerce Clause (Article I, Section 8, Clause 3, of the U.S. Constitution) to include penalizing a citizen for not buying a product or service. (And that’s good news as a precedent for the future.)

So, based on that decision, Obamacare would not be constitutional if it were considered as written, passed by Congress and signed by the President. But since Justice Roberts - and the four so-called, “liberal” judges making up the majority - transmogrified the penalty in front of them into a tax, that allowed Obamacare to be rendered constitutional.

Some say Roberts made his decision to prevent his court from being perceived as partisan, the way the Rehnquist court was after the 2000 Bush v Gore decision. Some say - and a part of his written opinion actually intimates this - that Roberts felt the future of Obamacare should ultimately rest in the hands of the electorate, which he knew would be possible in barely more than four months.

By voting with the liberal wing of the court, Chief Justice Roberts declared his independence and demonstrated intellectual honesty; both are traits I admire very much. But, alas, I fear the contrived method he used - turning a penalty into a tax - to produce this particular ruling may go down in history as not the finest hour of this chief justice.

Finally, here’s a political observation: The Roberts’ ruling on Obamacare was a gift to Republicans, but not the way many pundits are saying. I think it will result in longer coattails for Mitt Romney on November 6 with the down-ballot candidates, like the House and Senate, to a degree that he would not have been able to achieve on his own.

We continue to live the Chinese curse: “May you live in interesting times.”

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Since last week’s Supreme Court ruling on the Patient Protection and Affordable Care Act, I have talked with several experts on my radio program, including Michael Reagan, Barbara Weltman, Grace-Marie Turner and Rich Galen, on what will happen now - from the potential costs and implementation of the bill to the politics and possibility of repeal. Click here to see the list of guests and listen or download any of our conversations.

Check out more great SBA content HERE!

Is ObamaCare good for small businesses?

The Patient Protection and Affordable Care Act, aka Obamacare, was passed by Congress and signed into law by President Obama two years ago. It was considered the signature accomplishment of the president’s first term.

Obamacare was hailed as comprehensive health care reform that would not increase the deficit and would solve rising insurance costs for small businesses. Two years hence, here is evidence that seem to refute these claims.

  1. The initial price tag for Obamacare was $940 billion over 10 years. The Congressional Budget Office (CBO) recently reported the new estimate to be $1.76 trillion over 10 years, almost doubling the original claim.
  2. Instead of the lower insurance costs small businesses were promised, the non-partisan Congressional Budget Office expects costs for small group and individual insurance purchasers to rise faster now than without Obamacare. And according to the Galen Institute, Obamacare’s early mandates contributed to employer costs rising three times faster last year than they did the year before.

  3. There are at least two parts of Obamacare that are causing small businesses to restrict growth plans and rethink compensation models and employment structure in anticipation of these provisions.
    • The employer mandate requires small businesses with more than 49 employees to provide “government-approved” health insurance or face a $2000 fine per employee, after the first 30. The employer mandate does not apply to part-time employees.
    • Obamacare does include tax credits for employers with fewer than 50 employees, but as the number of full-time employees and average compensation increases, the credits decrease. These provisions seem to be at cross-purposes with much needed jobs and income growth. Also, even if the individual mandate currently being considered by the Supreme Court is struck down, the employer mandate and tax credit restrictions would still apply.

  4. We wanted to know how small business owners feel about Obamacare, so in our online poll recently, we asked this question with three possible answers: “On the 2nd anniversary of Obamacare, where do you stand on this law?” Twelve percent of respondents chose, “I like it and think it will be good for America,” while those who were “Undecided,” represented 10% of our sample. But the rest, 78%, said “I don’t like it and think it should be repealed.”

Write this on a rock… Obamacare is contributing to the economic uncertainty that small business owners are feeling.

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On my radio program, The Small Business Advocate Show, I’ve talked extensively with Grace-Marie Turner, President of the Galen Institute, co-author of Why Obamacare is Wrong for America and staunch advocate of market-based healthcare solutions, about the real cost - in dollars and liberties - of Obamacare.

Click here to listen or download our conversations.

Check out more great SBA content HERE!

Watch Jim’s videos HERE!

Take this week’s poll HERE!

Small Business Advocate Poll: Where do you stand in regard to ObamaCare?

The Question:
On the 2nd anniversary of the Patients Protection and Affordability Act (ObamaCare),
where do you stand on this law?

12% - I like it and think it will be good for America.

78% - I don’t like it and think it should be repealed.

10% - Undecided

Commentary:
In an ironic coincidence you can’t make up, during the week of the second birthday of Obamacare, the Supreme Court heard more than six hours of arguments - for and against - as it considers challenges to the constitutionality of ObamaCare.

During this momentous week we wanted to know the attitude of small businesses - Main Street’s court - on Obamacare, so we asked our audience this question: “On the 2nd anniversary of the Patients Protection and Affordability Act (ObamaCare), where do you stand on this law?”

A little more than one-in-ten of respondents to our unscientific, online poll said, “I like it and think it will be good for America.” Those who said, “I don’t like it and think it should be repealed,” came in at a resounding 78%. And those who were “Undecided,” represented 10% of our sample.

We will find out in June if SCOTUS agrees with small businesses.

Check out more great SBA content HERE!

Take this week’s poll HERE!

Small business owners answer questions about growth

One of the big issues these days is why the economy isn’t growing. Many people believe one reason is because businesses, especially small ones, are so uncertain about the future that they aren’t taking the risks associated with growth activity, like hiring more people, borrowing money or other expansion steps.

We wanted to know what small business owners think about this, so we asked our NEWSLETTER subscribers and website visitors to tell us about their perspectives on growth opportunity. Here is the question we asked: Please, tell us where you fall in this issue. “I am not taking growth steps because…”

Here’s how our respondents answered:

23% said:  I’m worried about the economy in general.

15% said:  I can’t get financing to fund growth opportunities.

58% said:  Government actions make me uncertain about the future.

4% said:  We are not experiencing growth opportunities

Perhaps the good news is that only four percent of our respondents indicated they were not experiencing growth opportunities.  The bad news is, as you can see above, 96% of responders were so troubled by three issues that they either can’t or aren’t growing their businesses.

These responses track pretty closely with others I have seen lately.  There is no way to sugar-coat this: When small business owners are troubled, the economy is troubled.  I don’t know what’s going to happen next, but I do know that my prediction earlier this year in an article titled, “The shape of this recovery is M” is coming to pass. This recovery is more of a marathon not a sprint.

But we’ve come too far to quit now.  This is no hill for a climber, and you’re a climber.  I’m proud of you. You should be proud of yourself.

To participate in next week’s poll question, visit www.smallbusinessadvocate.com and vote.

What President Obama doesn’t get about creating small business jobs

In the two previous posts, I reported on things I liked about President Obama’s State of the Union speech and my critique of his specific small business jobs-creation ideas.  In this post, I predict that all of the tax credits, bank loans or other policy gyrations designed to influence small businesses to create new jobs will fall woefully short of a successful result because none of these issues are the reason businesses aren’t creating jobs. The reason for sluggish jobs creation is best described by paraphrasing a recent movie title: Mr. President, we’re just not that into your policy initiatives.  Here are the two issues Obama doubled-down on in his speech that are in direct conflict with his hope of new small business jobs.

Health care reform: Most Main Street small business owners will be reluctant to hire new employees as long as Obama and his party’s leadership push a health care reform agenda that sounds confusing at best and prohibitively expensive at worst.  Mr. President, if you want more small business jobs, scrap the current health care reform bill in Congress and start over with market-based solutions that make health insurance portable by giving tax advantages to the individual rather than the 20th century model of deductions for the employer.

Climate change legislation: America’s businesses, large and small, are already the most carbon-efficient in the world when the appropriate measurement is ascribed, per dollar of GDP.  Mr. Obama should congratulate businesses for this and encourage more of the same, instead of deriding and demotivating the marketplace with his climate-change policies that cause small businesses concern over what will happen to their energy budget if the current climate-change legislation is passed. 

President Obama, your current strategy for motivating small businesses to hire more people won’t work. You need better small business advisors who can prevent you from embarrassing yourself with statements and proposals that demonstrate how out-of-touch you are with Main Street.

Recently on my radio program, The Small Business Advocate Show, I reported in more detail on these issues. Take a few minutes to listen and, as always, let me know what you think the government can do to help small businesses hire more people. Listen Live! Download, Too!