(NY Times) Many employers (job creators) thought they may be able to hold on to employees by shifting the costs of health insurance premiums to them by providing their workers with a tax-free contribution so they could buy their own health insurance wherever they may please–what could be wrong with that?
Not so fast according to the Obama Administration which has nixed this plan in a new IRS ruling that forbids employers from dumping their employees into the ObamaCare exchanges by levying a $100 a day fine ($36,500 annually) for every employee that is provided money to purchase their own health insurance–thereby raising the costs on businesses to actually maintain employment levels.
“For decades, employers have been assisting employees by reimbursing them for their health insurance premiums and out-of-pocket costs,” said Andrew Biebl, a partner in CliftonLarsonAllen, LLPAccountants based in Milwaukee. “The new federal ruling eliminates many of these arrangements by imposing an unusual punitive penalty.”
Raising the costs and regulations on American businesses does not incentivize companies to add more jobs or increase wages, according to a recent Congressional Budget Office report on ObamaCare which confirmed what many of us had already believed, that the ACA is having a tremendously negative impact on economic growth.
Besides the latest IRS regulatory burden that ObamaCare will have on economic growth and opportunity, the Natl Federation of Independent Business Research Foundation estimates the ObamaCare ‘Health Ins Tax’ will result in a further reduction in private sector employment of 152,000 to 286,000 jobs, with California being hit the hardest and a loss of between $20 to $33 Billion of economic activity by 2022
When even the Federal Reserve admits that ObamaCare is hurting the economy, its long past time that it must be repealed.