Good point!!

 

I was typing up a rebuttal and then I said...wait a second.....:lol:

I was typing up a rebuttal and then I said...wait a second.....:lol:

 

Too funny! :lol:

For any employee who is not full, full time (i.e. exempt 45 - 60 hours a week) and even if they are full time companies will be looking to minimize any 'fixed' cost associated with each employee. And the lower paid and lower hours employees will, repeat absolutely will, take the brunt of this 'adaption'. Why? Because Mr. Excel says that is what is needed to keep cost low, stay competitive AND stay in business in the long haul. AHCA fails in understanding micro-economics 101 first sentence of the first paragraph of the first chapter in the book - a business exist to create wealth for its owners. A business can and most do a lot of other things - include provide benefits for employees as attraction and retention tools. But at the end of the day if a business fails to earn wealth for its owner(s) it will cease to exist (unless the government takes it over and gives it to the unions). Paragraph two of the book says you have to be better than your competition - in terms of quality and price. And price is a function of cost and cost is driven a lot by output per employee per hour.

 

Under AHCA the basic cost of 3 employees who have different hours is very different. Employee #1 - works 27 hours a week, employee #2 - 30 hours a week and Employee 3 - 50 hours a week. All make the same hourly rate. Name it - does not matter. But under ACHA - Employee #1 has no fixed medical costs, #2 - has fixed medical cost as does #3. On a pure output per dollar basis - Employee 1 is the best to have. Employee 3 is next and finally Employee 2 is the most costly per unit of output (waiting tables, delivering pizza, etc.) Pizza and restuants are price (and hence cost) sensitive. People will switch easily and quickly for lower price. So this is a problem.

 

Solution - hire a bunch of Employee #1's, maybe some #3s but get rid of every #2 you can. Non full time, but more than 28 hour employees will be the most expensive on a per sold unit (pizza, table, etc.).

 

So this is what these specific cost sensitive industries will do - dump or cut the hours of every employee who is not working at least 40 hours a week. And they may try to replace a #3 full timer with two #1 part timers. This is not theory. This is what the Excel spreadsheet to do and they will have to do it. Of that there is no doubt.

 

In today's LHL there were articles about two mid-range resturants closing in Lexington Green - Tony Roma's and Regatta. Both are already gone due to the weak economy. Those still left will have to cut cost to simply survive. Cutting employees who are high part timers will have to be part of that.

 

Sorry for the gloom and doom on Friday night before big games. But that is how I see it. And take no joy in understanding that this will happen!

Papa Johns, Applebees, and Krogers show no sign of failing...

Everybody is different. I've always rolled with the punches and blamed myself when I have failed.

 

Personal and business failure is all on you?

 

You can't be a Democrat then, they fail because someone else caused them to or they didn't get a fair chance.....

Personal and business failure is all on you?

 

You can't be a Democrat then, they fail because someone else caused them to or they didn't get a fair chance.....

 

Gotta love stereotypes.

I'm not sure how this thread got to 141 posts. There is no brain science here and no hidden conspiracy - on either side of the political spectrum.

 

The Affordable Care Act imposes a sizeable tax on businesses greater than 50 employees.

 

Traditionally, when the government imposes taxes and fees that affect businesses, companies "adapt" by passing those costs on to consumers in the form of increased cost of product and/or services. However, in this instance, the tax is rather steep and passing all of the cost on is impractical. Noone is going to buy $20 pepperoni pizzas (well, we might buy them from a homespun pizzeria, but we're not going to from a frozen dough delivery franchise).

 

So, companies "adapt" in other ways, by firing employees, reducing hours/wages and otherwise lowering the cost of production.

 

There's nothing ulterior about that. Now, if you want to label the owners evil because they choose to make political statements out of it, be my guest, its a free country. But don't sit here and pretend that you didn't expect this to happen.

 

Incidentally, these are only the stories getting pub. Its happening widespread, I have at least a half dozen clients who have been pink-slipped effective 1/1/13 just in Bardstown at greeting card factories, airline freight suppliers, geo-engineering firms, specialty pipefitters, etc. These are not in the newspaper.

 

The fact of the matter is, the ACA will not do what it is intended to do. First, it doesn't apply to businesses with 50 employees or less. That accounts for nearly 80% of all businesses, and 50% of all employees, in America. So when the purpose of the Act was to make sure all Americans are health-insured but the Act doesn't apply to 50% of all employees in America, the Act is ineffective. Second, because the Act was rushed to the floor of Congress, there were no studies done to account for its impact and likely reaction in the marketplace. What is occurring is pure capitalism, and its beautiful.

 

What I expect next is an effort at amending the Act to apply to businesses with 50 employees or less. Want to see revolt? You will really have it then. I have already told my 5 secretaries whom are not already insured by their husbands or on Medicare that if that occurs, they are all fired. I am perfectly capable of typing my own letters/pleadings and filing items at the courthouse.

I guess I still don't understand. Why not just charge the extra 15 cents per pie?

Gotta love stereotypes.

 

What would you know about stereotypes?

Gotta love stereotypes.

 

Heck, I was complimenting you.

 

Republicans say no one has any responsibility, Democrats want everyone to be responsible for everyone.........

I'm not sure how this thread got to 141 posts. There is no brain science here and no hidden conspiracy - on either side of the political spectrum.

 

The Affordable Care Act imposes a sizeable tax on businesses greater than 50 employees.

 

Traditionally, when the government imposes taxes and fees that affect businesses, companies "adapt" by passing those costs on to consumers in the form of increased cost of product and/or services. However, in this instance, the tax is rather steep and passing all of the cost on is impractical. Noone is going to buy $20 pepperoni pizzas (well, we might buy them from a homespun pizzeria, but we're not going to from a frozen dough delivery franchise).QUOTE]

 

HS, I think maybe the reason this thread has dragged on is that the PJ CEO is on record saying that implementation of AHCA will add between 11 and 14 cents to the cost of each pie. I'm no economist, but that doesn't sound unmanageable.

 

Add 15 cents to the price of each pie. Hell, advertise it as an Obamacare surcharge. And while you're at it, give your food-service employees - the ones on the front lines - the means to better health.

The fact of the matter is, the ACA will not do what it is intended to do. First, it doesn't apply to businesses with 50 employees or less. That accounts for nearly 80% of all businesses, and 50% of all employees, in America. So when the purpose of the Act was to make sure all Americans are health-insured but the Act doesn't apply to 50% of all employees in America, the Act is ineffective. Second, because the Act was rushed to the floor of Congress, there were no studies done to account for its impact and likely reaction in the marketplace. What is occurring is pure capitalism, and its beautiful.

This has been my main problem with Obamacare. That and it doesn't do a thing to lower cost of health care for the vast majority of the middle class. I bring up the middle class because we're the ones that have been lied to the most.

An owner of an independent pizza place in WI says that now the "big buys" will get their prices in line with the little guys.

I'm not sure how this thread got to 141 posts. There is no brain science here and no hidden conspiracy - on either side of the political spectrum.

 

The Affordable Care Act imposes a sizeable tax on businesses greater than 50 employees.

 

Traditionally, when the government imposes taxes and fees that affect businesses, companies "adapt" by passing those costs on to consumers in the form of increased cost of product and/or services. However, in this instance, the tax is rather steep and passing all of the cost on is impractical. Noone is going to buy $20 pepperoni pizzas (well, we might buy them from a homespun pizzeria, but we're not going to from a frozen dough delivery franchise).

 

So, companies "adapt" in other ways, by firing employees, reducing hours/wages and otherwise lowering the cost of production.

 

There's nothing ulterior about that. Now, if you want to label the owners evil because they choose to make political statements out of it, be my guest, its a free country. But don't sit here and pretend that you didn't expect this to happen.

 

Incidentally, these are only the stories getting pub. Its happening widespread, I have at least a half dozen clients who have been pink-slipped effective 1/1/13 just in Bardstown at greeting card factories, airline freight suppliers, geo-engineering firms, specialty pipefitters, etc. These are not in the newspaper.

 

The fact of the matter is, the ACA will not do what it is intended to do. First, it doesn't apply to businesses with 50 employees or less. That accounts for nearly 80% of all businesses, and 50% of all employees, in America. So when the purpose of the Act was to make sure all Americans are health-insured but the Act doesn't apply to 50% of all employees in America, the Act is ineffective. Second, because the Act was rushed to the floor of Congress, there were no studies done to account for its impact and likely reaction in the marketplace. What is occurring is pure capitalism, and its beautiful.

 

What I expect next is an effort at amending the Act to apply to businesses with 50 employees or less. Want to see revolt? You will really have it then. I have already told my 5 secretaries whom are not already insured by their husbands or on Medicare that if that occurs, they are all fired. I am perfectly capable of typing my own letters/pleadings and filing items at the courthouse.

Good post as usual. You make way too much sense for some to understand.

Good post as usual. You make way too much sense for some to understand.

 

You know, at some point these kinds of comments have begun to feel insulting to me. The implication that I and others can't look at an issue and feel differently are lacking in either intellect or "sense" is simply a slap on the face.

 

In this particular issue, there are companies out there who were offering benefits to their PART TIME employees decades ago. There are companies out there who are NOT looking to cut hours, close businesses or in any way negatively affect their workforce. It will be up to each business owner to decide what is best for their business. But there are models out there to look at that have successfully grown their businesses while offering health benefits. No one seems to wants to consider those, though.