Friday, September 14, 2012

Obvious: KFC franchiser explains why he will have to cut employees hours as a result of Obamacare...

KFC - Long John Silver's Co-branded restaurant: Exterior

Obamacare is a train wreck for small businesses. Small businesses are normally the jobs growth engine of the economy. You don't have to be a genius to figure out the result of the full implementation of Obamacare.

Via Washington Examiner:
That is until he pulled out his powerpoint showing how funding Obamacare will cut his--and likely their--profits in half overnight. With simple math the small business folks understood, he spelled out that their only choice is to slash employee hours so they aren't eligible for company-paid health care or stop offering insurance and pay the $2,000 per employee fine.

Barr has 23 stores with 421 employees, 109 of whom are full-time. Of those, he provides 30 with health insurance. Barr said he pays 81 percent of their Blue Cross Blue Shield policy, or $4,073 of $5,028 for individuals, more for families, for a total bill of $129,000 a year. Employees pay $995.

Under Obamacare, however, he will have to provide health insurance for all 109 full-time workers, a cost of $444,000, or two and half times more than his current costs. That $315,000 increase is equal to just over half his annual profit, after expenses, or 1.5 percent of sales. As a result, he said, "I'm not paying $444,000."

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