22 days…
September 9, 2013
Southern Torch (3845 articles)
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22 days…

22 days until the Affordable Care Act (Obamacare) will take effect. Do you have any idea what will follow?

I’ve spoken with local business owners in the community to see if there is anyone looking forward to Obamacare…and in the business community, there is not.

Every small business is vital to the local community and even more important in the rebuilding of the American economy. Any owner or manager of a small business can tell you that EVERY new regulation made by the federal, state, or in some cases even local government, has a direct impact on the already thin bottom line. Not only is the bottom line affected, but most often, how that business functions is also impacted further decreasing profits and capital investments. In my 10 years associated with a small business I’ve yet to see a regulation that improved operations or increased a bottom line.

The passage of the Affordable Care Act by the Obama Administration in 2009 is proving to be no exception. It has set this country on a course that will forever change the landscape of small business. Time and again, new legislation is passed under the guise of it being for the ” benefit of the masses”. The masses may benefit but who pays the toll? The American people were assured the ACA was a sure solution for the “woes” of our existing healthcare system. But who’s “woes?

It is becoming very clear that small businesses will take the brunt of the poorly designed and executed bill. As a manager of a small business I am keenly aware that the ACA will greatly exacerbate operational burdens already facing small business. I read the original 12334 page bill and was overwhelmed with numerous questions and concerns, none of which have been clearly answered since its passage.

Obamacare has saddled the small business with UNCERTAINTY. Uncertainty is that euphoric state of unpredictability, indefiniteness, and indeterminacy and creates numerous negative effects such as:

  • Hiring freezes and in many cases, layoffs and reduction in hours
  • Reduction or elimination of employee benefits. Those who continue to offer employer-based health benefits, will see a dramatic rise in coverage costs.
  • Rise in legal fees to stay abreast of and ensure compliance with this massive piece of legislation
  • Skyrocketing administrative costs to implement new requirement such as producing 1099s for purchases over $600.00 and new W-2 reporting requirements.
  • Postponement of capital investments – thus withholding additional revenue from the local community

Although my office does not meet the minimum requirements to implement Obamacare, I am still faced with those “uncertainties” listed above and all the costs and operational impacts. I’ve yet to see how the masses will benefit, however, I certainly see the “woes” of the system becomes the burden of the small business.

22 days…

Southern Torch

Southern Torch

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