Burden of Obamacare
Recorded on March 24, 2011
It's time for common sense; I'm Ernest Istook.
An owner of ten franchise restaurants in the Midwest employs almost a thousand people, and he'd like to expand and create more jobs.
But he won't, thanks to Obamacare. It's simple math: The insurance mandates in Obamacare would cost him about $7,000 per worker each year. But his company's net income is only $3,000 per worker. So the new health care law tips his ten restaurants over the edge from profitable to unprofitable.
Now he could agree to pay fines rather than paying full insurance for each worker: but even those fines would also wipe out his profits. Plus then taxpayers would have to buy the insurance for his employees.
No matter how you play the game, Obamacare is a loser. The best strategy is not to play at all, meaning Obamacare should be repealed.
For common sense, from The Heritage Foundation, I'm Ernest Istook.