Start Up Cost For New Businesses and Obama Health Care Cuts

Start up costs for new businesses these days of global recession is an issue that requires more thought than trite on misguided reform platitudes that will harm instead of help small business.

While Obama and his men are making effort to save money from all sorts of cost centers, especially health care you as the small business owner should not overlook the impact their decisions will have on your business in terms of health care cost in respect of your employees.

Start up cost for new businesses will even be more harmfully impacted by all these cost cutting policies that are robbing salt into the wound of recession. Who says that reform will benefit small business when start up cost for new businesses is almost none existent?

The below article is a clear expose on the effect the cuts will have on small business now and in the long term. Read and make up your mind...

A Reality Check For Whitehouse.gov/realitycheck

Two separate problems are inherent with www.whitehouse.gov/realitycheck. One, it's pure Obama propaganda. Two, it's funded by you, the taxpayer.

In my American Issues Project column today, I take on the reality of the six narratives the President puts forward via his proxies in videos there. I'll share two "reality checks" here, but I hope you'll read the whole thing.

The topic of the day seems to be "death panels". President Obama and his representatives insist that utilitarian and actuarial arguments will have nothing to do with decisions. People are skeptical for very good reasons:

"The 'euthanasia' distortion on help for families" Related to the rationing concern, euthanasia is like unto it--rationing begets denial of care. Containing costs, when administrative costs are out of control (a problem with all bureaucracies), means denying high-cost items. Since the majority of health care costs come at the end of life, the bureaucracy is going to look at limiting end-of-life care. This is just common sense.

So, what that will mean is this: Grandma might have a two weeks left, but if parental nutrition (IV nutrition) was withheld, she would die in three days, instead. This results in enormous cost savings. It may also deprive the family of her last waking moments. It may deprive the family of time to say last good-byes, etc. These are intangibles. Life and death and the choices around them are incredibly personal. The government board who decides such things will, by cost-cutting necessity, insert themselves and be making moral (or immoral, depending on one's perspective) decisions. This is a valid concern.

There are five other myths over there including talking about current Medicare recipients, veterans benefits paying for care, rationing, keeping your own insurance, etc. The most snort-worthy is that government run health care is good for small business:

"Reform will benefit small business - not burden it" This statement is just laugh-out-loud worthy. The best treatment of this subject is by Patty Briguglio, small business owner. I urge you to read her whole article. Here's a snippet:

The president plans to use revenue from these higher taxes to pay for the $634 billion health care reform reserve fund. The administration's new health care mandate would require employers like me either to offer health insurance to our employees or to pay an unspecified percentage of our payroll toward the cost of a national plan. Right now, I give each of my employees an allowance toward health care -- essentially, they obtain the health insurance plan of their choice, and I reimburse them. In most cases, this allowance covers 100 percent of the cost of their insurance. Some of my employees worry that under the administration's new mandate, they would not be allowed to keep their current insurance plans.

So, the plan will tax small businesses, but give them a tax credit. Guess what happens when costs sky-rocket? That's right. Buh-bye to the tax credit. Furthermore, small business, already struggling with cash flow, decreased credit availability, a shrinking market and increased overhead proportional to profits, will have to pay more taxes? This is an economy killer and small business people know this. So does the administration.

Again, please go read the whole thing. As a taxpayer, you should be very concerned that the Obama administration is using the power of their pulpit to give bad information this way.

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I hope that the above article helped to prepare you for the battle ahead if you are an employer, and if you are planning on going into business it should make you know that getting start up costs for new businesses these days requires more work and a better business plan than ever before.