A Quiz For You

Just for the moment, assume you have a small business. And further assume you have (4) employees that you pay $36,000 per year.

Now assume a law is passed that forces you to pay each employee $48,000 per year. But your business income is not increased. In fact, during the recession, the business income is probably shrinking. Still, the law says you MUST pay your employees that extra $12,000 per year.

So, what do you do, to remain solvent and still abide by the law?

You only have two choices:

1) lose $48,000 per year and risk bankruptcy because each employee must get a $12,000 raise, or

2) lay off one employee, and use the $36,000 you WERE paying him to cover the $12,000 raise you must give each of the other three.

If you have any business sense at all, you would choose option #2, and tell the remaining three employees they must pick up the slack from the lost employee, because THEY are now getting HIS pay in addition to their original salary. They are getting 1/3 more pay, so you expect 1/3 more work from them.

Sounds mean, I know, but remember - you own the business, and you are responsible for supporting the families of your remaining employees. Therefore, you have an obligation to keep up production so you do not have to go broke and lay everyone else off.

Well, this is exactly what will happen to millions of small businesses if the current health care bill is passed. It includes a provision that FORCES businesses to provide insurance coverage to all employees. And that coverage costs an average of $12,000 per year per employee.

Under this plan, every small business will be required to increase the cost of each employee by about $12,000 per year. This will, by necessity, cause even higher unemployment.

Yet, the Democratic vice chair of the finance committee and Nancy Pelosi are saying this plan will HELP small business.

As a small business owner, I do not need that kind of help, thank you.

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