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CBS News features my latest piece on Obamacare’s effect on the workforce. It’s a topic that has received surprisingly little attention, given the radical impact this legislation would have in a time of economic strain. Over at Patterico, DRJ points out that “Section 401 imposes a tax on uninsured individuals equal to 2.5% of AGI effective after 12/31/2012, and an excise tax on businesses of 8% of wages for employers who do not provide health care. ‘Small’ employers with payrolls under $400,000 a year pay excise taxes based on a sliding scale from 0-6%:”
Does not exceed $250,000 — 0%;
Exceeds $250,000, but does not exceed $300,000 — 2%;
Exceeds $300,000, but does not exceed $350,000 — 4%;
Exceeds $350,000, but does not exceed $400,000 — 6%.
There’s an easy response to this, of course, if you’re a small business: convert your employees into contractors, and make them buy their own insurance. And they have to be real contractors — the IRS is going to be sticklers about that according to Obama’s budget blueprint.
As Francis says: “Pelosi says we’re at the doorstep of history. We’re about to slip on the ice.”
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If this monster passes, and employers convert employees to “contractors” guess what??? More and more people are going to learn how much taxes they really pay. I do my taxes every month as a contractor. The contractor will see social security is not 6% but 12.5% and medicare is 2.9% not half of that. Add in federal and applicable state taxes. The contractor sees the entire cost to employ the individual. In my case I pay sometimes 50% of my after expenses income to taxes!!! When you are reminded of this every month, I see a big tax revolt in order. I see a repeal of government itself. We governed, gave consent to be governed and we have the right to abolish a tyrannical government….
Support states rights. It's the only way out and the only way back to the kind of balance toward the states our contry was set up to be.
Oh my goodness, I was just telling my husband that this is EXACTLY what small business owners need to do. To find my thoughts written here, confirms my thinking is correct and I/WE are not alone!
Oh my goodness, I was just telling my husband that this is EXACTLY what small business owners need to do. To find my thoughts written here, confirms my thinking is correct and I/WE are not alone!
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