Any business that has more than 50 employees is required to purchase health insurance for their employees or pay hefty fines, so many are now downsizing or refusing to expand beyond 49 employees.
Also, in order to avoid the increasing cost of purchasing insurance for full-time employees, many small businesses will be forced to cut their employees’s hours to 29 or less to qualify as “part-time.”
Layoffs Announced After Obama’s Election
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The layoff tsunami has already begun. Pepsi announced they will be letting 4,000 people go. Energizer is shutting down two plants and firing 1500 workers. Bristol- Meyers, US Cellular, Boeing, Hawker Beechcraft, Caterpillar, DuPont…the list is growing longer every minute.
In Ohio, the CEO of Murray Energy gathered his staff the day after the election, read them a prayer, and then proceeded to lay off 54 people:
“Lord, please forgive me and anyone with me in Murray Energy Corp. for the decisions that we are now forced to make to preserve the very existence of any of the enterprises that you have helped us build. We ask for your guidance in this drastic time with the drastic decisions that will be made to have any hope of our survival as an American business enterprise.”
In this news interview he explains his painful decision:
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Another business owner in Las Vegas said he didn’t tell his employees how to vote, but he did try to warn them that an Obama win would put his business – and their jobs – in jeopardy:
“I explained to them a month ago that if Obama gets in office that the regulations for Obamacare are gonna hurt our business, and I’m gonna have to make provisions to make sure I have enough money to cover the payroll taxes, the additional health care I’m gonna have to do, and I explained that to them and I said you do what you feel like in your heart you need to do, but I’m just letting you know as a warning this is things I have to think of as a business owner.
“Well unfortunately…we know what happened and I can’t wait around anymore, I have to be proactive. I had to lay off 22 people today to make sure that my business is gonna thrive and I’m gonna be around for years to come. I have to build up that nest egg now for the taxes and regulations that are coming my way. Elections do have consequences, but so do choices. A choice you make every day has consequences and you know what, I’ve always put my employees first, but unfortunately today I have to put me and my family first, and you watch what’s gonna happen. I’m just one guy with 114 employees — well was 114 employees — watch what happens in the next six months. The Dow alone lost 314 points today. There’s a tsunami coming and if you didn’t think this election had consequences, just wait.”
Dr. Jeffrey R. Cornwall explains some of the primary factors that entrepreneurs know will soon hurt them:
Higher Taxes – Both parties had planned to increase taxes. Since they both favor a large and active government, no matter which party won, higher taxes are on the way. This means higher income taxes and quite possibly an additional new tax system that is based on a value added tax (VAT). That means entrepreneurs will be keeping less of the wealth they create. It also means that the cost of compliance with increase, possibly dramatically.
Inflation – Inflation is not coming, it is here. Neither party seems to have the courage to address this silent beast. Prepare for more inflation and higher interest rates.
Healthcare — ObamaCare will hit small business owners hard over the coming years. It will hit hard in terms of costs and in terms of the uncertainty it creates in terms of what it all will really means. Remember that most of the details are not in the legislation, but will be put into law over the coming years by unelected bureaucrats. Even if Romney had won, he would only have tweaked ObamaCare. And this would only have happened if he had the legislative support to do so, which is questionable.
Regulation — We will see a continued increase in regulation of businesses and the economy. Again — the cost of business is going up.
You can go to DailyJobCuts.com for continually updated lists of layoffs and business closures.
Liberals are trying to blame the layoffs on “greedy,” supposedly heartless businesses owners who only care about profit. They refuse to acknowledge that their own policies are responsible, and that profits are necessary to drive jobs and growth.
These businesses tried to hold on at least until the election to see if a new president could relieve their crushing regulatory and tax burden. Now they see the handwriting on the way and know that they have no other choice. It’s a sad day in America, and the innocent will suffer.
Millions of Americans will now become unemployed and underemployed as a direct result of Obamacare and other job-killing policies.
Thanks alot, Democrats! So much for your claims of being the “compassionate” party of the working class!