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.”