ObamaCare, just where do you think that money comes from?

I recently got involved with a discussion about ObamaCare with another individual here on Tblog. He states that he is a small business owner and believes that if ObamaCare passes then he'll no longer have to worry about rising health care costs. Apparently he's under the impression that all small business owners support this sort of measure since he himself apparently thinks it's such a wonderful idea.

I guess my question to this individual, and to anyone else who supports ObamaCare, is a simple one. Just where do you think the money is going to come from to pay for this new entitlement program?

Ok, so you have government paying for your employees insurance now, but where do you think the government is going to get that money? Well, if we take Obama at his word, he's going to raise taxes on the dreaded "rich".

Well anyone who has been following the debate at all or has read through the house/senate bills can tell you that pretty much anyone that owns a small business of any appreciable size will now fall under the category of being "rich". I've heard quite a few numbers tossed around for a "cut-off" of who would be considered rich. $200,000, $250,000, even as low as $125,000 net income per year. Remember that the $125,000 to $250,000 cut off doesn't apply to your gross earnings, the amount of money you actually take home, it applies to your net earnings, the amount of money your business takes in before any expenses or taxes are figured in to the mix. That means it doesn't take much of a business to make that much in net earnings. Most independent truckers, for example, with a single truck and a single employee (themselves) gross more than this per year. Of course when you factor in all the expenses, licensing, fuel, etc their take home pay is much much less than this, but under the Obama administration guess what? They're considered "rich".

So yes, while the amount of money your paying for "health care" for your employees might go down, guess what? The amount of money your paying in taxes is going to go way, way up - far more so than what you were paying in health care costs initially.

Anyone who actually owns a small business and has enough of an accounting background should realize this almost immediately. Anyone who doesn't understand enough accounting to grasp this simple concept shouldn't be doing their own accounting and should hire a good cpa who would tell them the same thing almost immediately.

And just where do you think small businesses, large busineses and the dreaded "rich" will get the money to pay all these new and increased taxes? They'll do what they'll have to do, they'll raise the prices of the goods and services they provide to offset this new cost of doing business. Again, accounting 101.

So who really gets hit with the blowback from all these? Same people that always do whenever the government raises taxes, the middle class. Honestly folks it's time to stop all this silly class warefare rhetoric and face reality, any new tax regardless of what supposed income level they are targeting it against, will always come back to hit the middle class.

Raise taxes on any business or business owner and they treat it the way they have to treat it, as a business expense. If you raise taxes on walmart do you think they take that money out of their profit margin? If they do their stock prices get hurt and their stockholders get mad. No, they do what they have to do, they raise the prices of the products they sell to cover that cost. So does every other business. You raise taxes on them, they raise the price of the goods or services they provide. If they provide goods or services to another business, that business might also have to raise the prices of the goods or services it provides to compensate for that increase in cost.

The biggest myth in all of this I think is that some how government run health care is "free". It isn't. No government service is, and none ever will be. Whenever another entitlement program gets passed the cost of it always falls quite squarely on the middle class, despite the rhetoric and regardless of which political party institutes it.

So if you do run a business, or even if you don't, you might seriously wish to reconsider it, because you'll end up paying for it one way or the other, and odds are good once the government gets involved the price is going to go up. It always has.

Little food for thought.

posted by: PastorDave (reply)
post date: 03.09.10 (7:35 am)

You make sense. And that's the problem. There's a mindset that these are issues to be addressed with emotion and not common sense. Of course when you raise taxes on the "rich", they siply pass the cost on to the worker and the consumer. And if you raise taxes too much, they close the business and put their money in a safe hideaway. Somewhere behind this is class warfare and jealousy and even greed, the idea we will punish the rich for not volunteering to give us their money. Too bad our current administration will not address the sociological and character issues that have created so much of the problems of society today, instead of playing to populist warfare.

posted by: sos (reply)
post date: 03.09.10 (12:33 pm)

Sad but true I'm afraid. Unfortuantely the formula is quite clear, if you punish success and reward failure eventually all you have is a whole lot of failure, and without those that succeed the system collapses because there are no more successful people to take from to reward those that have failed.

Oh I know I'm going to have the libs in a real tizzy over that one, but it's just a matter of common sense. That's why communism, socialism, et al has never worked anywhere it's ever been tried.

But it's easy to get a group of people together who have next to nothing and convince them that it's not their fault, that its the fault of some greedy rich guy who's oppressing them. Sadly they never seem to understand that it's not the greedy rich guy that's oppressing them, it's the government handout system that rewards them for staying poor and punishes them whenever they try to do something to change that circumstance.

Their kids learn the same thing, and so you have generation after generation now who's greatest aspiration is simply how can I get more government benefits. And it's not a race thing, it's a socio-economic thing, but whenever you bring up the topic some ignoramus plays the race card. Again, sad but true.

But on the upside Obama has done one thing exceptionally well, he's exposed the lies and hypocracy of the Democratic party for all to see and done so in such a spectacular fashion that it's not likely to be forgotten anytime soon.

All his hope and change rhetoric from his campaign has transformed into his real message, "sit down and shut up because I'm taking over and I could care less what you think."

The corruption and amazing hubris they've shown I think will garuantee them a spot as the minority party for years to come, and I don't think Obama has a snowball's chance in hades of getting re-elected unless the republicans put up a real dud as a candidate again.

My only hope is that the republicans have learned there lesson in all of this. That people are tired of the corruption, their tired of the lip service, they want real, measurable results. They want government off their backs. They don't want a bunch of blue blood liberal RINO's in charge anymore, they want folks who will actually do what they say their going to do - as long as the party gets on board with that theirs going to be a serious shift in power in 2010 and then again in 2012.

If not then I'm afraid that the conservatives, particularly those in the tea party movement, will say enough is enough and abandon the republican party for an independent 3rd party. I hope that doesn't happen myself.

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