Category Archives: economy

Imperial Health Care Anyone? Witness the Lord’s Day Debacle

If Democrats pass the Obamacare bill, America will enter further into the domination of global socialism. Contrary to elite members like Obama, Clinton, and Soros, our constituted nation was not founded on the consent of the duped by the deceiving salesmanship of power-mongering tyrants. It was founded on the coterminous principles of the informed consent of the governed and a covenant with the Providential Creator–God of truth. If that consent is based on cleverly devised half-truth or lies, the consent was not valid or legal.

If our supposed-representatives in DC have not even read the bill in order to determine its costs and benefits, it cannot be said that they have represented anything for any constituents. Their party line Yes or No vote means nothing. The only real meaning it has is a vote for the party agenda. Based on such a vote, no law can be enacted that violates our rights and Constitution.

That is what the Obamacare legislation does. Dictators dictate law. Obamacare law purports to dictate to free citizens by coercing them to purchase one of three healthcare insurance policies at the point of criminal prosecution, financial penalties, and possibly (at some point) imprisonment. By ultimately eliminating a free market in healthcare, the Democrats will force the same kind of failed socialist health care system experienced by Canadians and Europeans.

The grossly false claim that the best health care system and economy in the world will allow thousands of people die without a socialist take-over of the healthcare system is countered by the testimonies of Canadians and Europeans who would have died had they not come to America for treatment. They would have died like many others because they had to wait for their turn to receive medical treatment.

Just as many more unborn children will certainly be killed under Obamacare, many more elderly can be expected to die because of a decline in quality care.

Moreover, small businesses will be adversely affected by the mandates imposed on them by Obamacare. Small business owners and many in the middle income tax bracket will end up paying up to a quarter of their income on health care costs as structured by Obamacare, according to American Enterprise Institute Fellow and Physician Scott Gottlieb.

Health care costs will not decrease because of Obamacare; they will increase because of the various costs to insurers, businesses, and their inflationary costs passed on to consumers. Everyone will pay more for less.

Because the price tag of Obamacare is over a trillion dollars, all will pay higher taxes either directly or indirectly. On top of higher taxes and cost of goods, the increase in federal debt will trickle down through the loss of jobs, reduction of income levels, decrease in number of small businesses, or some combination of them. As financial analysts keep warning, more government debt means fewer investment dollars, which in turn means less capital for current and start-up businesses. Thus making it a real possibility that America will enter into a European-like level of value-add tax socialism that once characterized the Roman Empire. Rome fell in part because it was overburdened by financial debt, by many over-taxed angry subjects, and by ever-increasing political corruption.

Pax Americana may be next.

I pray the gracious, the powerful, and the providential God defend and protect America from the political scheme aimed at winning votes in November’s election at the expense of all our economically common good. Long live the true and supreme Lawmaker, King, and Judge.

(See also my previous posts on how health care reform legislation effects small businesses and its funding of abortion.)

Ohio Leads Nation Using Stimulus Funds For Water And Sewer Projects

As reported by the Dayton Daily News, Ohio leads the nation with 274 sewer projects being funded by stimulus dollars. Ohio also ranked third with 62 drinking water projects.

“All told, 700 jobs are being created or retained with the work, officials said. A little more than $279 million in stimulus funds are matched with $196.1 million of low-interest loan money for the projects.”

The inference here is that it takes a little over $678,000 to keep 700 water works and construction workers employed. The report did mention for how long.

At one point, City of Xenia officials thought they might be able to get stimulus funds to repair a retaining wall at Shawnee Park. I’m sure that would also retain a few workers as well.

I must confess the recent repair of the big hole in front of the sewer on my block was appreciated. If it were not for the multi-billion dollar tax bill at the stimulus gold rush I would hope it was paid for by Obama and Company. It’s that bankrupting stimulus repayment that is too frightening to garnish any confidence in a genuine financial recovery.

Manufacturer Consumption Down in 2009

By Daniel Downs

It appears no one is being a good consumer nowadays. Not only are retail and service consumers holding on to their nickels and dimes, but so are industrial consumers.

The latest report by the American Association of Manufacturing Technology (AAMT) revealed consumption of industrial technology goodies was down 60 percent in 2009.

The shining bright in the midst of the black lagoon of recessionary consumption was the Midwest region–Ohio included. During the month of December, the Midwest was the only region posting real dollar increase in spending. Good ole’ consumption of metal cutting technologies was up 19.4 percent while consumption of metal fabricating technologies was down 4.8 percent. Total real dollar manufacturing technology consumption was 14.1 percent, according to the number crunchers at AAMT.

I can just smell the hot cutting oil burning. Ahhhhh!

Unfortunately, the rich aroma of oily production was only smoking up the Midwest during December. This fortuitous event may have been the combined result of both the automaker bailout by Congress and Obama’s stimulus, an effort to make his own light shine upon the hill. According to the AAMT, however, the total year-to-year consumption was down by 65.4 percent, which was more than any other region in the USA.

So where do place the blame for the depressing downturn of industrial consumption? Was it solely caused by bureaucrats on Capitol Hill? Greedy bankers? The lovers of money printing at the Federal Reserve? Or just a bad case of gas caused consuming to much manufacturing technology? Maybe it was a combination of the aforementioned causes?

The rest of the story

RE: “Greene County snubs advocate of its interests,” Dayton Daily News, Friday, January 29, 2010. Greene County Commissioners Marilyn Reid and Alan Anderson were correct in significantly reducing taxpayer contributions to the Dayton Development Coalition (DDC), except their rationale for doing so didn’t reveal the whole story. True enough, the budget is tight, but even in good times our elected officials shouldn’t be throwing money over the fence to special interests without competition for that work, without value added and without oversight. That’s precisely what happened in 2005-2006 with the Base Realignment And Closure (BRAC) Initiative Agreement between Greene County and the DDC. The simple truth is the only jobs protected by this effort were high priced consultants, lobbyists and career politicians who received kickbacks to their political campaigns. Here are the facts to support that assertion.

In 2005 and 2006, the last 21 months of the $1.9 million BRAC Initiative Agreement, the Dayton Development Coalition also received a $2.34 million Third Frontier grant through Development Research Corporation, a non-profit company fronting for the DDC. In 2005-2006 the DDC paid over $500,000 to their President and CEO, over $300,000 to a Washington lobbying firm currently under investigation by the FBI, $190,000 to Qbase which is teetering on the edge of bankruptcy, and over $200,000 to two other consultants, not to mention at least $50,000 on domestic and foreign travel.* Although this is just the tip of the iceberg, it’s hard to disagree that it reveals a broad pattern of self-dealing, waste and abuse, if not blatant corruption by the Dayton Development Coalition and their inner circle.

Ms. Reid and Mr. Anderson finally understand that Greene County and Ohio taxpayer dollars had minimum impact if any at all on saving or creating jobs at Wright Patterson. But what they did impact was the financial well-being of the special interests that recycled that money back to the politicians who in the end took credit for job creation they had nothing to do with. This is an insult to Greene County taxpayers, not to mention Wright Patt professionals that day in and day out provide the real value added to our warfighters who put everything on the line to protect our freedom and liberty.

*Source: BRAC Initiative Agreement, Internal Revenue Service, Federal Election Commission records and other documents obtained in a public records disclosure lawsuit against Greene County Commissioners (Case #: 2009CV0305).

Obama’s State of the Union Address: Economic Plans Only Problem Causers Believe In

Last Tuesday, Obama presented his “let’s get the party agenda done” speech. Like his campaign rhetoric, it was long on feel good sales hype and short real substance.

While blaming all of the nation’s economic woes on Wall Street, he proclaimed our economic salvation is to be found in spending more money. The core of his spending plan was focused on three areas: The first is developing clean energy because it will save us from the impending catastrophe of climate change. The second is spending more money on health care because it will supposedly save us all money. The third is spending more money on education so that the next generation will be able to afford more loans in the global economy. Before Obama can increase spending on those three areas, money must be spent on getting banks to lend more money because credit (meaning more debt) is the lifeblood of the American [corporate] economy.

Ramussen recently published the results of its national survey of American opinions about government spending and the economy. The results make it clear that Obama and congressional Democrats are out of touch with the nation, which is to say Obama only hears the cheering choir of the elite liberal and socialist Left.

About 53 percent of Americans told Ramussen reduced government spending would help the economy. Sixty-one percent (61%) said cutting taxes is a better way of helping the economy than increased spending. One of Obama’s save the nation initiatives, heath care reform, is opposed by 61 percent of the nation. Americans want it dropped. Apparently, American fail to believe the presidential sales hype that health care reform will save money or do much to create good paying jobs.

Will Obama’s federal spending freeze help the economy? If temporarily halting the rate of spending 17 percent after increasing it by 20 percent in a single year, then yes it will help. Financial advisors like John Mauldin also say such a gesture is laughable. It’s laughable because the freeze covers only a small part of the federal budget and consequently maintains the 20 percent increase in discretionary, social security, military, stimulus, health care spending, according to the Independent Institute.

Obama’s statement that he is not for big government is as laughable as the spending freeze, but his placing the sole blame for the economic crisis on Wall Street and banks is not.

Remember, the economic crisis began with the collapse of the housing market. The mortgage industry bubble burst because Washington lawmakers made it possible for cheap loans to unqualified buyers continued unabated. Big banks held very large portfolios in those types of loans. We should not forget that the SEC is the federal regulator of Wall Street as Ben Bernanke’s Federal Reserve is of the banking system. The Bush administration appealed to the various oversight committee of Congress to correct the mortgage problems evident at Sallie Mae and Freddie Mac, but the Democrats refused, and it gets even better. The legal counsel of ACORN who was the main player in forcing banks to lend to the unqualified home buyers was none other than Barak Obama, whose Treasury Secretary Tim Geithner is a federal reserve insider, a previous Fannie Mae executive, and a reputed bailout king of Wall Street. It is Obama who selected Geithner and fought for Bernanke’s return the Fed to continue wrecking our national economy. As the old saying goes, point one finger and three are pointing back at you, Mr. Obama.

In a May 2009 article, Independent Institute Senior Fellow Ivan Eland points out the practices of the Federal Reserve that produced the housing bubble and financial industry meltdown. To soothe Wall Street jitters after 9/11, the Federal Reserve lowered the federal fund rate, printed huge sums of new money, flooded the credit market making easy loans the norm, which led to overly inflated housing values, inflated costs of consumer goods, and decreased spending.

Those are a few likely reasons why 72 percent of Americans surveyed by Ramussen expect Obama and congressional Democrats to increase spending and the national debt. In other words, most Americans realize elected and unelected bureaucrats are expected to continue the same policies of spending our way out of debt. Those who have suffered bankruptcy know it will not work.

Okay, but, what about energy and education? Surely, spending more on developing new forms of energy and related technologies as well as improving education will surely create more jobs. According to the Ramussen survey, about 60 percent of Americans believe government spending less will result in the creation of more jobs.

The issue is who should pay for the development and marketing of new energy and related technologies? Loaning taxpayer money to businesses developing new types of energy or new related technologies would benefit society. However, investors and banks exist for that purpose–not government. Increasing taxes or taxpayer debt to spur profitable businesses is a misuse of taxpayer money. Let the private sector invest in and profit from new forms of energy and related technologies. That is how capitalism works. Government’s job is to ensure it benefits all citizens, consumers, groups, industries, businesses, and employees.

Obama’s rhetoric about spending more taxpayer dollars to make all of America’s children globally competitive is the same old sales baloney regurgitated since the passage of the Elementary and Secondary Education Act (ESEA). The poor still are dropping out of school in alarming numbers, students still to not do as well as others in the world, the gaps between poor and non-poor student still (and is not actually expected to cease to) exist, and more money is being spent to solve the problem they do not solve. Why spend more on failed policy and practice? In her book Dependent on DC, Economic professor and lawyer Charolette Twight explains how ESEA spending was never meant to solve the problems of education. The purpose of ESEA (now, NCLB) is to expand federal power over state and local education. Federal spending on education means more dependency of local school for funding on unaccountable elites in Washington D.C.

Schools targeted as political pawns throughout 2009

One year to the day that House Democrats took the majority, State Representatives Jarrod Martin (R-Beavercreek), Seth Morgan, CPA, (R- Huber Heights), and Gerald Stebelton (R-Lancaster) summarized the 2009 legislative year as a time of unfunded mandates on schools and damaging funding cuts to poorer districts, charter schools, e-schools and Catholic schools. Additionally, rather than streamlining state spending to ensure adequate funding for education, Governor Strickland chose to fund K-12 education with unstable revenue from video lottery terminals, an unconstitutional plan that eventually failed and put Ohio’s education system at risk.

“Throughout this economic turmoil, lawmakers Republican or Democrat need to remain committed to ensuring a bright future for Ohio’s students,” said Martin. “The political pandering and aggressive tone that threatened devastating cuts to education was a clear demonstration of partisanship by Governor Strickland and House Democrats who carelessly placed the reductions on education before examining other bloated areas of the Executive branch or legislature.”

House Democrats managed to cut state education funding by nearly $400 million over the next two years, the first time since the DeRolph case of 1997 that the Legislature recommended education funding cuts. They also imposed costly mandates on schools by requiring the implementation of all-day kindergarten starting in the 2010-2011 school year, which many districts have said they could not afford in this economy.

“Recognizing that education is central to Ohio’s long-term success,” said Morgan. “House Republicans proposed numerous ideas to increase Ohio’s chances of receiving federal funding through the Race to the Top program, preserve school choice, and alleviate oppressive mandates on districts. They also introduced a number of amendments to the budget to improve the governor’s evidence-based model.”

The Ohio Department of Development has estimated that establishing all-day kindergarten in Ohio’s 613 school districts will cost more than $200 million, including $127 million in operating costs and $78 million for classroom space. House Republicans avow that enforcing this mandate on already-struggling schools will force many to cut programs or extracurricular activities to be able to afford the mandate.

“I will continue to fight to save the taxpayers of Ohio money, and to cut wasteful government spending, while protecting our most valuable asset, the future of Ohio-our children’s education,” said Stebelton. “I was disheartened by the inept leadership in Columbus to threaten our schools and even libraries while budget discussions were still going on.”

However, House Democrats have silenced many Republican initiatives since the beginning of the General Assembly. Although the Ohio House has been plagued by stalemates and inaction in 2009, House Republicans remain hopeful that 2010 will bring bipartisan discussions about Ohio’s future and how to responsibly bring our education system into the 21st century economy.

Martin Pushes To Save Taxpayers’ Money

Representative Martin recently gave sponsor testimony to members of the House State Government Committee on House Bill 302, which when enacted would stop contractors from purchasing and erecting signs at project sites paid for by the American Recovery and Reinvestment Act (ARRA).

“Since October, I have urged hearings on this bill in committee and I am pleased that I was finally able to provide sponsor testimony,” Martin said. “With the taxpayers already overburdened by government spending, House Bill 302 is long overdue. The ARRA signs are little more than political propaganda and are a waste of tax dollars. The taxpayers in Ohio and across the country should not be required to fund these signs, especially during this time of economic difficulty.”

The signs cost approximately $1300 each to produce and erect. They are paid for by stimulus dollars and are written into the winning contract, officials say. The total price tag to the State of Ohio could add up to $1 million for the signs reading “Project Funded by the American Recovery and Reinvestment Act.” The Federal Highway Administration did not require the posting of these signs but only recommended it. It was the Ohio Department of Transportation that required them to be posted at projects paid for by stimulus dollars.

“I encourage swift action by the House on this legislation,” Martin said. “Considering Ohio’s budget shortfall and the significant cuts our schools and the elderly have suffered, requiring tax dollars to go towards this propaganda is disgraceful. The people of Ohio are tired of government squandering, and it is time that legislators, both in Columbus and Washington, start listening to the people they were elected to serve.”

Re-thinking the War on Terrorism

By Andy Myers

”Observe good faith and justice toward all nations. Cultivate peace and harmony with all . . . The Nation which indulges toward another an habitual hatred or an habitual fondness is in some degree a slave. It is a slave to its animosity or to its affection, either of which is sufficient to lead it astray from its duty and its interest.” (George Washington, Farewell Address, September 17, 1796)

I hate that term: “The War on Terror.” I hate using the word “hate.” But I feel so strongly that our foreign policy has gone awry that I can’t help but speak out. We should all feel a duty as Americans to protect and defend the Constitution the limits of which are made a mockery of by the misguided “intellectuals” in Washington and their taxpayer funded “think tanks” who call the shots and continually get it wrong. Their punishment is a promotion to some other bureaucratic agency where they can wreck more havoc and again disregard the rule of law. Even congress, who’s authority it is, doesn’t even have the fortitude to “declare war” as outlined in Article I, Section 8 of our Constitution anymore.

Can you imagine what our founder’s would think of our foreign policy exploits and the executive powers held by the President today?

Death, destruction-reconstruction, and the bankrupting of behaving as an “empire” will only garner additional support for those who despise our overreaching foreign policy behavior.

Nations don’t hate us because of our way of life or our freedom. They despise our government’s never ending meddling in their internal affairs. Ask yourself how you would feel if a “foreign” nation were on our soil doing what we are doing in over 130 countries and over 700 bases around the world. You know all too well you’d be fighting mad!

“Of all the enemies to public liberty war is, perhaps, the most to be dreaded because it comprises and develops the germ of every other. War is the parent of armies; from these proceed debts and taxes-known instruments for bringing the many under the domination of the few. No nation could preserve its freedom in the midst of continual warfare.” (James Madison, Political Observations, 1795)

Our military overstretch and the liberties and freedoms we are losing everyday is frightening. Even President Eisenhower’s prophetic warning to the American people of the threat from an ever increasing military industrial complex hardly garners attention and yet today this warning stands as true as ever. Don’t get me wrong I’m no isolationist, and I don’t think there aren’t any credible threats out there that shouldn’t be dealt with. But, I firmly believe that what we are doing today in terms of dissipating the threats to our country are wrongheaded and misleading the American public along with exacerbating the threat of another possible attack all the while bankrupting this country.

“I’m not upset that you lied to me, I’m upset that from now on I can’t believe you.” (Friedrich Nietzsche)

Like most think tank propaganda carefully chosen by the government and it’s cohorts through mainstream media pulpits, the average “patriotic” American along with elected leaders and worse-our children-are easily indoctrinated into believing we must do “everything” in our power including military occupations, torture and renditions to make America safe from those who would seek to harm us. But, where do you draw the line? Do two wrongs make a right? Madeline Albright’s infamous interview on 60 Minutes is a perfect example of reprehensible logic and sadly is very common place with today’s foreign policy “experts.” Here is the excerpt:

Lesley Stahl on U.S. sanctions against Iraq: “We have heard that a half million children have died. I mean, that’s more children than died in Hiroshima. And, you know, is the price worth it?”

Secretary of State Madeleine Albright: “I think this is a very hard choice, but the price we think the price is worth it.” (60 Minutes, 5/12/96)

“We must not let our rulers load us with perpetual debt. We must make our election between economy and liberty or profusion and servitude. If we run into such debt, as that we must be taxed in our meat and in our drink, in our necessaries and our comforts, in our labors and our amusements, for our calling and our creeds… [we will] have no time to think, no means of calling our mismanagers to account but be glad to obtain subsistence by hiring ourselves to rivet their chains on the necks of our fellow sufferers… And this is the tendency of all human governments. A departure from principle in one instance becomes a precedent for [another ]… til the bulk of society is reduced to be mere automatons of misery… And the fore-horse of this frightful team is public debt. Taxation follows that, and in its train wretchedness and oppression.” (Thomas Jefferson)

I am also convinced that the American people cannot remain free and prosperous with over 700 military bases around the world, troops in over 130 countries, and a steady diet of war propaganda. Our military overstretch is undermining our national security and bankrupting our country all the while making us here at home less free and safe. I believe that those who have been calling “the shots” are terribly misguided. And, that if something isn’t done soon to educate and change the way the grassroots movements across the country think about our overreaching empire abroad, our constitutional republic, our children and their children will pay a punishing price in both lives and treasure.

“Truth is Treason in an Empire of Lies.” (Congressman Ron Paul)

Something that is a “fundamental must” in understanding if we are even to be able to grasp what role America should adhere to here at home and abroad is in the theory of natural rights that was espoused by our forefathers and by John Locke (1632-1704). In his Second Treatise, Locke stated that every man was entitled to life, liberty, and property (his “natural rights”) provided that exercising those rights does not intrude on others rights, and that the role of government in natural-rights theory is to protect those rights.

Without staying true to this tenet, America will be damned just as every other civilization has been in it’s pursuit of “empire.”

City of Xenia Announces May Ballot Issue

Xenia City Council unanimously passed legislation on Thursday, January 14, 2010, which is the first step in the process that will give voters the right to decide whether it’s time to raise the City’s income tax rate from 1.75 percent to 2.25 percent. The proposed tax increase, which would appear on the May 4, 2010, ballot, is expected to generate an estimated $2.7 million for the City. This revenue would help to maintain current Police and Fire staffing levels and services as well as provide much needed dollars for street improvements and other general capital improvements. If voters approve the legislation, the City’s tax credit will not be affected, which is a maximum of 1.5 percent. Further, 0.25 percent of the increase is dedicated solely to maintain current Police and Fire staffing levels and services and provide funding for police and fire capital needs (i.e., police cars, ambulances, etc.).

City Council has been deliberating the city’s finances after the defeat of a Replacement 3.5 Mill Operating Levy in February 2009. Voters approved a renewal of the 3.5 Mill Operating Levy in August 2009. Although the City needs those dollars, the renewal levy only kept the existing revenue stream in place and did not provide any additional funding. The City of Xenia has not received a voted income tax increase since 1991. Further, the existing 3.5 Mill Operating Levy was initially passed in 1959 and has generated very few additional dollars since the 1970s. Mr. Bazelak said, “The City of Xenia has received only one voted tax increase (a quarter percent in 1991) over the last 30 years and that increase was almost 20 years ago. Income tax collections have declined significantly over the past year and there has been a reduction in local government funding from the state, and with little growth in other revenues, it is just not enough anymore to be able to provide the same level of services that our residents have come to expect.” City Manager, Jim Percival said, “the City has done everything we can do to reduce expenses, save jobs, and maintain current Police and Fire staffing levels. We have cut everything we can cut … we cut nine full-time and two part-time non-union positions in September 2009, two vacant police officer positions have not been filled, a wage freeze for non-union employees was put in place in 2009 and will continue in 2010, and union contracts have been renegotiated with concessions. This comes on top of a staff reduction of 15 employees in 2003. Voters need to be made aware of the potential additional cuts to police and fire and service reductions so they can make an educated vote on May 4th. City streets are also in grave need of improvements, but there are just not enough capital dollars to make any substantial improvements.”

In November 2009, the City began a community outreach initiative with a citizen perception survey of a limited number of residents conducted by Wright State University and a focus group of community leaders facilitated by 3-F Coaching. The results of the survey and focus group discussion were utilized in forming a recommendation to Council on a potential levy ballot issue. The survey indicated street improvements as well as police and fire services were top priorities for citizens. The survey results are available on the City’s website at www.ci.xenia.oh.us. Council President Patricia Felton said, “Nobody wants to raise taxes, but we feel an income tax increase is the best approach to raise the necessary dollars to maintain our current Police and Fire staffing levels and also provide much needed capital dollars for street improvements and capital dollars for police and fire. This is essential when it comes to the safety of our City. If it doesn’t pass, we’ll have to go to Plan B – which is to lay off 6 firefighters and 4 police officers – there is no other way around it.”

If approved by the voters on the May 4th ballot, the rate increase would be effective January 1, 2011. The City realizes the economic difficulties of our community and took that into consideration when determining what amount and what of type of issue to place on the ballot. Those with higher incomes would pay more, those with lower incomes would pay less, and those with no earned income would pay nothing at all. For a middle-class Xenia household making $40,000 a year, the increase would cost less than $17 a month. All Social Security, company pensions, dividends, and interest income would continue

Health Care Reform Consensus: It Will Harm Millions of Small Businesses

By Daniel Downs

Small business employs more people than large corporate establishments. By comparison, small businesses employ 50.2 percent of all American workers, while large corporations employ only 49.8 percent. Depending on the statistical source used, the number of Americans employed by small businesses is between 60 to 69 million. Self employed entrepreneurs make up between 32 to 38 percent of small businesses.

Small businesses also lead the nation in creating new jobs. According to Small Business Trends, two-thirds of all new jobs are created by small business. http://smallbiztrends.com/2009/11/who-creates-the-most-jobs.html

So why do Congressional Democrats favor the interests of big business? Why does their health care reform legislation give them large deductions for self-insured health care? One answer might be elite the liberal Congressional millionaires maybe attempting to protect their investments self-insuring corporations. Another possibility maybe that big corporations have better lobbyists, but who cares?

The largest and best employers in America are overwhelmingly opposed to Congress’ health care reform legislation. They oppose it not only because it gives unfair breaks only to large corporations but also because it will raise the cost of doing business, and threatens the ability of small firms to grow their business and create new jobs.

One aspect of the legislation specifically targets the construction industry, according to the Small Business & Entrepreneurship Council. “The bill singles out the construction industry by not exempting businesses in this sector from the “play-or-pay” employer mandate that other firms with 50 or fewer employees are exempt from.” Interestingly, the government defines small business as firms with 500 or less employees. Consequently, many other small businesses will be adversely affected by the unfunded mandates.

About one-third of the 22 million self-employed cannot even afford health insurance. Those who do purchase health coverage have experienced double-digit premium increases every year, making it difficult to retain insurance, according to the National Association for the Self-Employed (NASE). Because the Senate tabled an amendment that would have given a 50 percent deduction to small businesses, the cost of adequate health care will continue rise if the Democrats health care bill passes.

As outlined by the National Federation of Independent Business (NFIB), Congress’ health care reform will significantly increase the cost of health care to small businesses in the following ways:

The legislation includes a new $60 billion tax that falls almost exclusively on small business because the fee (tax) is assessed on insurance companies, which is confirmed by the Congressional Budget Office. This cost will be passed on to small business in the form of higher premiums, at least 10 percent higher. The cost of health care insurance is already 18 percent higher for small businesses than for large corporations. And, as previously stated, the new legislation exempts self-insuring large corporations from the additional costs.

Because employer mandates assess multiple penalties based on the income of full-time employees, there will be job loss, greater reliance on part-time employees, and harm to entry-level and low-wage workers.

The new reporting requirements increases administrative costs by $17 billion.

Small business with high rates of employee turnover may be put out of business because of a $600 fine for not providing all employees health insurance within 60 days.

Congress’ health care reform also limits previous cost saving options like tax-exempt Health Savings Accounts.

According to Small Business Coalition for Affordable Healthcare, a government-run health care plan cannot compete fairly with the private market and threatens to destroy the marketplace, further limiting choices.

http://www.smallbusinesshealthcarecoalition.com/Portals/2/KeyVote-Senate-%20H.R.%203590%20-%2012-2.pdf

One thing is certain; the health care reform of congressional Democrats will be neither affordable nor free-market friendly. Those are a few reasons why small businesses should petition their representatives. Small business owners can also sign the SBECs “Not On Our Backs” Small Business Health Care “Not On Our BacksPetition to voice their opposition to the proposed national health care legislation.