Obamacare: 21% Of Small Businesses Say They’ll Cut Payroll

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This is what happens when you saddle businesses with heavy new taxes and mandates for employee health benefits. That plus the certainty that some sort of major tax increases are about to come out of the “fiscal cliff” negotiations equals fewer Americans employed.

(CNSNews.com) – A recent poll from the Wells Fargo/Gallup quarterly survey shows that U.S. small business owners are growing “increasingly pessimistic” as the new year approaches, finding that 21 percent of small business owners’ expect to decrease their workforces in the next 12 months to a level not seen since Aug. 2003.

Wells Fargo small business head Marc Bernstein attributed the potential decline in confidence in part to the possibility of going over the “fiscal cliff,” or the automatic tax hikes and defense cuts scheduled to occur if Congress and the White House do not reach a budget deal by the end of this month.

“Business owners who navigated through the Great Recession now face more uncharted territory created by ongoing uncertainty in Washington,” he said.

Our political leaders keep grasping for some government program, some series of “stimulus” spending and government “investment” programs which will shock the economy back to health. But what the economy needs is lower taxes, a simpler tax code and fewer regulations.

It really is that simple. Of course, that means politicians giving up some of their power while displeasing certain government-dependent constituencies.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

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  • yy4u2

    The last sentence nails it!

  • SigFan

    Exactly what conservatives have been warning will happen if Obama and the left continue their class warfare game. Too bad for the country that so many are too ignorant to recognize the truth and logic.

  • mikemc1970

    Obama’s war on the private sector is going to make the next several years a completely economically depressed malaise of welfare lines, soup kitchens, and progressive violence.

  • matthew_bosch

    Revenues down, costs up, uncertain market conditions, increase in taxes=second recession

    • RCND

      Did we really ever clear the first one?

      • matthew_bosch

        Good point.

      • http://proof-proofpositive.blogspot.com/ Proof

        According to certain economists and the Obama administration, the Bush recession ended June ’09. The current one is all Obama’s.

  • $16179444

    pfft – its because people are retiring….obama isn’t to blame / Hanni Tard

  • chris

    I say it’s time to go back to the 1990s corporate tax rates.

  • sbark

    The National Federation of Independent Business says Obama Tax hikes hit 15% of small business…..not the 3% reported—-then add ObamaCare and 80,000 pages of new regulations per year.

    I’d say more than 21% will cut payrolls…….their the only ones that will state it without rear of poltical repercussions.

  • borborygmi

    What is the definition of a small business. How many employees?

  • Lynn Bergman

    The Simpson-Bowles recommendations to reduce the maximum inocme tax rates to be competitive with the rest of the world…AND at the same time, eliminate the vast majority of exemptions, deductions, and loopholes that tend to favor one taxpayer over another.. seem too easy… so why won’t either party embrace them? The answer is simple… incumbents created many of those exemptions, deductions and loopholes in order to secure favor and get elected. It’s hard to destroy one’s own inventions…

    Time for congress to do what’s HARD instead of kicking the can.

    • Bat One

      The GOP/Ryan budget bill passed by the House and studiously ignored by the Democrat-controlled Senate included many of the same provisions as Simpson-Bowles. Democrats, from Obama on down the food chain, aren’t one bit interested in reining in federal spending or working toward a balanced federal budget. Any talk by liberals to the contrary is a lie.

  • Bat One

    The rest of the survey results are just as dismal. 42% more respondents than in Q3 expect their capital spending to decline, 12% more expect difficulty obtaining business credit, while those expecting a decrease in business revenues jumped by more than 50%. Traditionally, between 65% and 85% of all new jobs are created by small businesses.

    The hiring projection is a new, post-recession record low, and the last record was “followed by massive layoffs” in the first few months of 2009. “While a repeat of that experience seems unlikely in 2013, there is the potential for a serious decline in jobs early next year if small business owners’ hiring intentions do not improve,” according to Dennis Jacobe, Gallup’s Chief Economist.

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