It takes eleven pages just to summarize the new 1990-page House government health care bill. Here is the summary.
The implications for my business is staggering. I have already mentioned in the previous post that it imposes an 8% tax on wages on my business -- a business where 50% of revenues go to wages and margins are in the 6-7% range. You do the math.
Worse for us is that nearly all our competitors are ma and pa companies with less than $500,000 in wages a year, meaning that our competitors will be exempt from these taxes, giving them an automatic 4% cost advantage over our company. Great.
Twelve seconds after this thing passes, I will be on my phone to my attorney to figure out if it is possible to break my company into multiple corporations that all fall under the 500,000 wage limit. The paperwork and administration for this would be a huge hassle, but it can't be as high as 4% of sales.
Beyond this, I have not seen the detail yet, but the old House bill imposed enormous record-keeping obligations on businesses. Basically, I would have to know at all times exactly what kind of medical insurance policy every one of my employees has. Barf.