Under Nancy's health care bill companies with payroll over $400,000 will have to pay 8% payroll tax. My uncle employs 10 workers for $39k each. How will this new tax on payroll (that is on wages) affect his eagerness to hire 11th employee?
by 
Alexander
ANSWERS: 4
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to get there your brother will have to settle for a 10K or less personal income next year to beat that cap . But more likely he will have to shrink his workers 20% so that he can enjoy the 200% personal wages he likely pays him self and put on 2 more hats.
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That is a perfect question to ask but not one that the big-government liberals will ever understand. In France, many of the various employment mandates kick in when a company reaches 50 employees. In their fondness for using English-borrowed words and phrases, they have a phenomenon known as 49ers. 49er companies are the ones that stop growing at 49 employees so the do not get saddled with the cost of various compliances that start when they hire the 50th.
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First of all, if your Uncle has payroll over $400k and he's NOT providing health insurance to his employees, then perhaps he should consider it. Also, your Uncle might do all sorts of things. He might go out and get a company health insurance plan. He might raise his prices to cover increased costs. He might opt to take a smaller profit margin. He might lobby his Congressperson to implement a genuine single-payer health plan and end the stupid coupling of health care availability to employment status. Or, me might not hire that next employee. But Bob down the street who competes with your Uncle but who only has 4 employees might hire that extra employee and take some market share from your Uncle. The main point is...I don't know, you don't know, none of us really knows. We can make educated guesses but that's all they really are (and some of them are less educated than others...;-D...). . . .
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We all know the answer to that question. Sadly people don't realize that when you tax the shit out of a business it just makes their products either more expensive or more poorly made...or non-existent in the cases where they can no longer make a profit. . There is talk of dropping extra taxes on manufacturers of medical marvels such as pacemakers. . Same thing applies: prices will go up, quality will go down (there's a winner) or they won't get made. companies that make such things are small and have HUGE R&D budgets. That's the other thing that will get lost - innovation. The R&D budget is the first thing that CAN be trimmed. Mona Charen had an interesting column http://townhall.com/columnists/MonaCharen/2009/11/03/health_care_overhaul_iv_this_time,_its_personal regarding these such devices.
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