Obamacare's worst nightmare coming true
Small business - the backbone of the American economy - apparently doesn't like Obamacare very much.
Despite the administration's controversial decision to delay forcing companies to join Obamacare for a year, three-quarters of small businesses are still making plans to duck the costly law by firing workers, reducing hours of full-time staff, or shift many to part-time, according to a sobering survey released by the U.S. Chamber of Commerce.
"Small businesses expect the requirement to negatively impact their employees. Twenty-seven percent say they will cut hours to reduce full time employees, 24 percent will reduce hiring, and 23 percent plan to replace full time employees with part-time workers to avoid triggering the mandate," said the Chamber business survey provided to Secrets.
Under Obamacare, just 30 hours -- not the nationally recognized 40 hours -- is considered full-time. Companies with 50 full-time workers or more are required to provide health care, or pay a fine.
The administration recently decided to wait a year before businesses had to comply, but many are trying to get ready anyway. The president did not delay the mandate that Americans must have health insurance or pay a fine, however.
The Chamber's second quarter small business survey found that just 30 percent are ready for the law and even understand what is required.
Dealing with Obamacare is the biggest worry of small businesses and comes as they continue to see a sluggish economy which has already put a brake on their hiring. Just 17 percent reported adding employees in the past two years. And only one-in-five small business owners believe that they will add employees in the next two years.
The Chamber added that "nearly one-in-four employers say the health care bill is their biggest obstacle to hiring more employees."
For small businesses, implementing Obamacare is the difference between loss and profit - not so for large corporations. Small businesses will do whatever they have to in order to stay in business. If that means cutting the work force, cutting hours, hiring part time instead of full time workers - they will do it.
This is the nightmare scenario coming true for the administration. They were told this would happen and they ignored the warnings.
Now they will reap what they have sown - and America will be poorer for it.