The CLA has noted another attempt by the Government (this time CA State) to stick it to the smallest of businesses, most of which are just trying to stay above water and what else: Raise taxes - this time payroll. Have you noticed in the last few years every Goverment (town, state, Fed.) have jumped taxes to a point of almost crisis. I mean they're getting so high now that even the politicians, who can never come up with any other innovation for fund raising than just raising taxes, must be even looking at their property tax bills and saying "what the Fuck?"
"California Health-Care Mandate Threatens Small Business
California's Senate Health Committee has approved a bill that, according to a recent small-business survey, could result in the loss of 249,000 jobs and cost the state's small businesses billions of dollars. Since California frequently sets trends for the rest of the country, this legislation is a step down a slippery slope that could lead to other states passing similar legislation, ultimately hurting all small businesses.
California Assembly Bill 8, which was approved with a 7-4 vote, requires the state's small businesses pay a 7.5 percent payroll tax if they don't offer health insurance, and those that do offer insurance but spend less than 7.5 percent of their payroll on the program(s) must pay the difference. The impact of this bill will be devastating to small-business owners, as they will be forced to lay off workers to comply with the bill and compensate for their share of the estimated $67 billion in lost sales.
California's Senate Appropriations Committee must approve A.B. 8 before the full state Senate can consider it, and the bill also will need approval from the state Assembly to become law. "
Via CLA
2 comments:
So California's essentially trying to "motivate" small businesses into providing healthcare for their employees. I suppose that tactic has its own logic in that the gov't's trying to make sure every worker has some sort of health insurance. But it ignores other consequences you've already mentioned.
Raising taxes seems to be government's answer for everything these days - but I guess if you're looking for innovative revenue streams you shouldn't be looking to government. Don't get me wrong - giants like Wal-Mart that need to be pushed to giving benefits to employees while breaking records with their profits are despicable. But to ask companies with 25 employees or less - especially in Retail with a gaggle of part-time hourly workers - is a joke. Not sure if you run a business but the tax bills you get (and some of them look like they're made up out of the blue - like "tangible city tax") from city/state and Federal make most small business owners want to gargle Drano. So lumping on yet another social burden tax to a florist or tanning salon with 2 part time employees is just a shortcut to thinking.
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