Health Care OR Employment

Health Care OR Employment

With the government creating new taxes for businesses that are the result of paying employees, companies will have 8% less money to employ people. Business will have to pay 8% more tax for each person they pay.

There is a funny thing about percents, you only get 100% of your money as the government creates new taxes that take small percents or big percents, each percent increase is a percent that cannot be ‘regained’. If a business had a profit that is less than 8% of the cost of their employees, then they will need to layoff employees or go out of business. If a business had a small profit margin because of competition, then the cost of goods will go up to compensate this tax increase.

This 8% tax increase will create the following problems:

• employee salary decreases
• price tags to consumers increases
• employee layoffs
• businesses failing if they cannot survive with less money and more taxes
• with all of the above problems, the government will probably collect less ‘total taxes’ and will have more people with their "hand out" in the unemployment line in need of help
• less jobs will be available since the cost of hiring someone has additional taxes tied to it beyond the social security tax, medicare tax, unemployment tax, job training tax, state income tax, federal income tax, and sales tax (on buying equipment)

Businesses have to pay more than just wages and taxes when hiring someone. Businesses need to pay for equipment and furniture and office space to equip the employee to work effectively. The tax burden just decreases the desire/benefit to hire someone. This decrease in desire/benefit reduces the number of people that are ultimately hired and employed.