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|Thursday, August 29, 2013|
BY JAN MEEKCOMS | OP-ED CONTRIBUTOR
The problem was Obamacare, and the solution was to declare that the policymakers and staffers who pushed the law through Congress could still receive ample federal health insurance subsidies that were supposedly reserved for lower-income families.
It is a perfect irony that so many of the same lawmakers and staffers who forced Obamacare on the rest of us, when faced with the having to pay for it, decided that it might not be worth the cost.
Most of us aren’t so lucky. This includes those of us in the small-business community who will be forced to face and pay for some of the law’s most complex and expensive provisions. And unlike Congress, we won’t be granted a reprieve.
The law requires all employers with 50 full-time equivalent workers to offer a government-approved, high-end insurance plan or pay a fine, which for many will be the cheaper option. When you’re struggling to turn a profit each month, the latter may be the more prudent long-term decision.
Other options that small-business owners are considering include cutting their workforce to below 50, or cutting back hours so more workers will be considered part-time, although Obamacare doesn’t make it that simple, because it defines full-time worker as those clocking in at 30 hours a week. As employers adjust by cutting hours and cutting workers, it is businesses and families that ultimately suffer.
Smaller businesses, too, are subject to a litany of new taxes, mandates and regulations that will cost even ones that employ only a handful of people thousands in compliance costs—not to mention the costs of aspirin for all the headaches employers can expect. One of the largest tax increases in the law, the Health Insurance Tax, will predominantly hit employers and employees in the small-business community.
Larger businesses are acting preemptively to avoid the looming costs of the law. The news is filled with stories about companies shedding workers, cutting hours and slashing benefits. UPS, for example, recently announced that because of the ACA, it would cancel coverage for 15,000 spouses. Forever 21, a clothing retailer, announced plans to eliminate most of its full-time workforce. Restaurants, hospitals, local governments and colleges are taking similar steps.
Could this be the future, a mostly part-time economy in which good benefits are rare? Economists can’t agree, of course, but recent jobs reports show a pronounced increase in part-time employment and very little growth in full-time jobs.
Of equal concern is the individual mandate, which will impact every American who buys insurance in the individual market—including a vast majority of small-business owners. The individual mandate—a tax, as was determined by the Supreme Court last year—takes effect on Jan. 1, 2014. For many, it will mean higher premiums or fines. There are no exemptions or delays.
And on October 1, in compliance with another Obamacare requirement that each state have a health-insurance exchange, Cover Oregon will open for business. Although small business hopes it will offer easy access, choice and affordability while becoming financially self-sustaining, that’s a pretty tall order, especially given the difficulties other components of the law have had.
Obamacare is the law of unintended consequences. Despite its name, the Affordable Care Act is raising the cost of insurance for almost everyone who pays for it now. It threatens full-time work that is the pathway to the middle class. But perhaps most dangerously for the U.S. economy, the law creates obstacles for small-business owners no matter which way they turn.
Hiring more people would trigger massive new costs. So they’re in a holding pattern, trying somehow to compete without growing.
Jan Meekcoms is Oregon state director for the National Federation of Independent Business, America’s largest small-business association.
Friday, June 27, 2014
BY JASON NORRIS | OB BLOGGER
Over the last several months we have seen a wave of cross-border acquisitions, primarily U.S.-based companies looking to purchase non-U.S.-based companies. There are a few reasons for this, but the main culprit is the U.S. corporate tax system. The United States has one of the highest corporate tax rates in the world.
Friday, July 18, 2014
BY JASON NORRIS | OB GUEST CONTRIBUTOR
Back in May, we shared a common Wall Street quote about investing, “Sell in May and go away.” Fast forward to July and the most common question we have been getting from clients is, “When is the market pullback going to occur?”
Friday, August 15, 2014
In this week's poll, we asked readers: "Who should pay for the troubled Cover Oregon website?" Here are the results.
Monday, July 14, 2014
BY VIVIAN MCINERNY | OB BLOGGER
Some people think Amazon’s winking eye logo is starting to look like a hoodwink.
Thursday, July 10, 2014
BY TOM COX | OB BLOGGER
Tom Cox interviews Dr. Mark Goulston, author of Just Listen, Discover the Secret to Getting Through to Absolutely Anyone.
Friday, August 22, 2014
BY CLIFF HOCKLEY | OB GUEST CONTRIBUTOR
When business intersects with family, a host of situations can arise. Without a clear vision and careful planning, hard-earned investments can become stressful burdens.
Tuesday, July 01, 2014
BY HANNAH WALLACE | OB BLOGGER
Demand for organic food continues to soar: Last year, sales of organic food rose to $32.3 billion — up 10% from 2012. In Oregon, organic produce wholesaler Organically Grown Co. has been championing organic growing methods for four decades.
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Lane Powell Shareholder William T. Patton has been appointed to the board of directors for Cascade AIDS Project, an organization that provides educational services and outreach to thousands of Oregonians living with HIV/AIDS.
Fifty-one Lane Powell lawyers were recently selected by their peers for inclusion in The Best Lawyers in America® (Best Lawyers) 2015; of those selected, 23 lawyers are from the Firm’s office in Portland, Oregon.
Barran Liebman is proud to announce that Andrew Schpak, a Partner of the firm, has been named Chair of the American Bar Association’s Young Lawyers Division for the 2014-2015 bar year.