The Myth That Businesses Don't Hire Because of ObamaCare or Obama Might Raise Taxes

IndependntLogic

Senior Member
Jul 14, 2011
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"Small and big businesses aren't hiring because of ObamaCare and / or because Obama is so anti-business, they're concerned he'll raise taxes!"
I've seen this foolish propaganda posted by Joe Average on several internet boards, in the comments sections of the Wall Street Journal and CNN and so on. Lord only knows who came up with this nonsense.
Obviously, whoever it was counted on an audience with two qualities:
1. They never owned or ran a small to medium sized business and
2. They never had division level or greater management experience in a large company.
Small Business
If a small business like mine experiences an increase in demand for their products or services, we have to react. If that means hiring more people, so be it. The key advantages of small business are speed and flexibility. If they do not capitalize on market conditions and opportunities, they won't remain in business long.
Additionally, small businesses can realize an immediate increase in revenues of ten to up one thousand percent. Remember, many small businesses realize gross revenues of less than one hundred thousand a year. A sudden surge in demand and in some cases, a single order can launch a small company to the next level.
So the idea that a business owner wouldn't hire the people needed to meet that demand because of a health bill that doesn't even take effect for years, is preposterous. The same goes with a tax increase that may never take place.
Big Business
Big businesses aren't as flexible or nimble as their smaller counterparts but the concept that a large business wouldn't hire to meet demand and increase profits is just as absurd. Managers are responsible for the profitability of their group or division. Executives are responsible to the board and / or shareholders at the quarterly meeting.
If a surge in demand occurs that could net the company millions or hundreds of millions, Executives and managers don't fail to meet the demand because of a few thousand dollars in benefits or a tax increase that may or may not ever occur.
For example, Motorola has been hiring at all levels for over a year. Why? The introduction of their answer to the IPhone (the Droid) exceeded all expectations. There was zero chance that the executives of Motorola would have gone to the shareholders and said "Well, we decided not to make the hundreds of millions of dollars in increased profits, because some day years from now, there might be an increase in one part of the benefits package we offer employees or maybe Obama might raise taxes some day."


Other examples of companies that have been aggressively hiring to meet demand are Macy's, United Health Care, Lockheed, Avis and Aflac. Demand has increased. They have hired to meet that demand. That's just business basics.

Personally, I consider ObamaCare a disaster and one of his biggest mistakes. To me, the bill is 1,800 pages of pure garbage and four pages of good ideas (eliminating pre-existing conditions, covering kids through college). But it has absolutely no impact on my hiring decisions or those of other executives. We view ObamaCare and taxes exactly the same way. If we can realize a gain in profits, we'll figure out how to deal with the other factors. That's why we're in charge. If we can't, then we shouldn't be in charge
 
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The Businesses That I am hearing about say it is because they are not able to see any long term goals by this administration.
The 2013 Budget that Obama put out is short term outlooks and they say they can't hire because there is no long term stability.
 
The Businesses That I am hearing about say it is because they are not able to see any long term goals by this administration.
The 2013 Budget that Obama put out is short term outlooks and they say they can't hire because there is no long term stability.

Businesses don't determine their actions because of a lack of direction by politicians - at least not businesses that survive. Like the Motorola example in the post.
 
indeed................

uncertainty about increased regultory burdens, higher fees, and increased taxes would never enter the minds of business people in their planning

liberal, utopian, clueless "businesspeople" that is..............
 

Indpendent View! LOL, about as independent as a kitten in the jungle! Businesses large and small have to weight costs vs review. All worker's salaries are costs, but then they have to tax into other costs like healthcare (which is skyrocketing I might add) and other benefits. Obaminationcare is adding to that cost! If the costs (and risks) outweight the revenue, then the cost is eliminated!
 
indeed................

uncertainty about increased regultory burdens, higher fees, and increased taxes would never enter the minds of business people in their planning

liberal, utopian, clueless "businesspeople" that is..............
big business.... maybe. small businesses not so much.
 
indeed................

uncertainty about increased regultory burdens, higher fees, and increased taxes would never enter the minds of business people in their planning

liberal, utopian, clueless "businesspeople" that is..............

Instead of just parroting the typical soundbites, you might consider driectly addressing points made in the OP. Foreign concept, I know but you may want to give it a try anway...
 
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Indpendent View! LOL, about as independent as a kitten in the jungle!
See signature.
Businesses large and small have to weight costs vs review. All worker's salaries are costs, but then they have to tax into other costs like healthcare (which is skyrocketing I might add) and other benefits. Obaminationcare is adding to that cost! If the costs (and risks) outweight the revenue, then the cost is eliminated!

From the OP:

"For example, Motorola has been hiring at all levels for over a year. Why? The introduction of their answer to the IPhone (the Droid) exceeded all expectations. There was zero chance that the executives of Motorola would have gone to the shareholders and said "Well, we decided not to make the hundreds of millions of dollars in increased profits, because some day years from now, there might be an increase in one part of the benefits package we offer employees or maybe Obama might raise taxes some day."

Personally, I consider ObamaCare a disaster and one of his biggest mistakes."

You might consider reading the OP before responding next time.

Oh and btw, the words you are looking for is "weigh" and "outweigh". Glad I could help! :eusa_angel:
 
indeed................

uncertainty about increased regultory burdens, higher fees, and increased taxes would never enter the minds of business people in their planning

liberal, utopian, clueless "businesspeople" that is..............
big business.... maybe. small businesses not so much.

Really!!! its even more important to a small business!! Fees, regulatory costs,taxes insurance costs are on the rise and effect companies of all sizes all the time.
 
indeed................

uncertainty about increased regultory burdens, higher fees, and increased taxes would never enter the minds of business people in their planning

liberal, utopian, clueless "businesspeople" that is..............

Well, it's not like they are trying to make money. Oh wait..
 
The Businesses That I am hearing about say it is because they are not able to see any long term goals by this administration.
The 2013 Budget that Obama put out is short term outlooks and they say they can't hire because there is no long term stability.

Do The Business That you am hearing about having names?

Can you tell us where they say what you claim?
 
indeed................

uncertainty about increased regultory burdens, higher fees, and increased taxes would never enter the minds of business people in their planning

liberal, utopian, clueless "businesspeople" that is..............
big business.... maybe. small businesses not so much.

Really!!! its even more important to a small business!! Fees, regulatory costs,taxes insurance costs are on the rise and effect companies of all sizes all the time.

Which taxes on small businesses have risen?
 
Really!!! its even more important to a small business!! Fees, regulatory costs,taxes insurance costs are on the rise and effect companies of all sizes all the time.

I think everything’s relative, which makes constantly changing tax policies/regulations more disruptive to businesses than a high long term tax rate or a low long term tax rate. If a tax rate is 30% in 1990 and 30% in 2012, the business wouldn’t notice a thing and would make no changes. But if it’s 30% in 1990, 15% in 2000, and then raised suddenly back to 30% in 2012 the business might flee the country or be forced to lay off people because it never had time to plan.
 
indeed................

uncertainty about increased regultory burdens, higher fees, and increased taxes would never enter the minds of business people in their planning

liberal, utopian, clueless "businesspeople" that is..............
big business.... maybe. small businesses not so much.

Really!!! its even more important to a small business!! Fees, regulatory costs,taxes insurance costs are on the rise and effect companies of all sizes all the time.

indeed................

uncertainty about increased regultory burdens, higher fees, and increased taxes would never enter the minds of business people in their planning

liberal, utopian, clueless "businesspeople" that is..............

Well, it's not like they are trying to make money. Oh wait..

The Businesses That I am hearing about say it is because they are not able to see any long term goals by this administration.
The 2013 Budget that Obama put out is short term outlooks and they say they can't hire because there is no long term stability.

Do The Business That you am hearing about having names?

Can you tell us where they say what you claim?

Y'all just might want to take a peek before posting the Standard ConservaRepub Pat Answer From Page 9 of the Pundit Prep Sheet.

OhPoo: I name two examples in the OP. My business (I don't hide behind the anonymity of the net) and Motorola - which kinda blows the whole "They're not hiring because of Obama!" thing right out of the water.
Other examples are Sears, Macy's, United Health Care, Lockheed, Avis, Aflac...
 
indeed................

uncertainty about increased regultory burdens, higher fees, and increased taxes would never enter the minds of business people in their planning

liberal, utopian, clueless "businesspeople" that is..............

Its not going to cause them to pass up profits, idiot.

Nope. Just prevent them from making them in the first place. Which is the problem.

If I can make a $3 profit selling a $5 item and then the government regulation increases the production from $2 per item to $7 per item, my potential profits have been eliminated. The only option I have is to increase the price, which decreases potential profits. Especially if a competitor can keep their product at the $5 range.

Those with more flexibility to eat costs, such as a large corporation, will have a better chance at surviving than a small business on a tight budget.
 
indeed................

uncertainty about increased regultory burdens, higher fees, and increased taxes would never enter the minds of business people in their planning

liberal, utopian, clueless "businesspeople" that is..............

Instead of just parroting the typical soundbites, you might consider driectly addressing points made in the OP. Foreign concept, I know but you may want to give it a try anway...

Why? You're just trying to drive traffic to your blog.... why should anyone waste their time pandering to your ego?
 
indeed................

uncertainty about increased regultory burdens, higher fees, and increased taxes would never enter the minds of business people in their planning

liberal, utopian, clueless "businesspeople" that is..............

Its not going to cause them to pass up profits, idiot.

Nope. Just prevent them from making them in the first place. Which is the problem.

If I can make a $3 profit selling a $5 item and then the government regulation increases the production from $2 per item to $7 per item, my potential profits have been eliminated. The only option I have is to increase the price, which decreases potential profits. Especially if a competitor can keep their product at the $5 range.

Those with more flexibility to eat costs, such as a large corporation, will have a better chance at surviving than a small business on a tight budget.

LOL! Well nothing like going juuust a little EXTREME! So. A tax or regulation that increases cost 350%?!?!?! Yeah, THAT is um, well, yeah okay. Get that analogy from Drudge, did you? :lol:
 
indeed................

uncertainty about increased regultory burdens, higher fees, and increased taxes would never enter the minds of business people in their planning

liberal, utopian, clueless "businesspeople" that is..............

Instead of just parroting the typical soundbites, you might consider driectly addressing points made in the OP. Foreign concept, I know but you may want to give it a try anway...

Why? You're just trying to drive traffic to your blog.... why should anyone waste their time pandering to your ego?

LOL! See signature. Oh and btw, the blog was a suggestion from another poster. I'm on a few boards and it's just easier to post threads about things that are foreign to you: Issues, Topics, Specifics....

Hugs & Kisses,

Your BFF
 
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