Let’s get straight to the bottom line: Obamacare will require businesses to increase their costs, plain and simple. Whereas before, businesses could get away with not providing healthcare, they will now have to pay a fine unless they cough up the money for Cadillac insurance plans for all of their full-time employees.
When costs go up and revenue stays the same or declines, there’s only one option for businesses that want to maintain their profitability: they must cut costs. How will these businesses cut costs? They will fire full-time employees.
The small business sector will be hit the hardest by Obamacare. Whereas larger companies can afford to pay the fine and not offer healthcare to their employees, small businesses face a much tougher decision.
The result, according to the International Franchise Association, is 3.2 million threatened jobs in franchise businesses alone, and an untold number of threatened jobs in other mom-and-pop businesses.
When businesses have to choose between the welfare of their employees and the sustainability of the business, everyone loses.