The reelection of Pres. Barack Obama has basically killed the momentum to overturn
Obamacare. Now businesses are scrambling to deal with the 20 or more higher taxes as a result of the legislation, ranging from a $123 billion surtax on investment income to the $20 billion medical device tax.
A number of companies have announced layoffs as a result of the new taxes associated with the health care law.
Welch Allyn, a company that manufactures medical diagnostic equipment in New York, announced a layoff of 275 employees, about 10 percent of their workforce, over the next three years.
Dana Holding Corp., a global auto parts manufacturing company in Ohio, warned of $24 million in cuts over the next six years due to additional U.S. health care expenses.
Stryker, one of the biggest medical device manufacturers in the world, is eliminating 96 jobs in December and more worldwide.
Boston Scientific announced it is cutting anywhere from 1,200 to 1,400 jobs and shifting investments and workers overseas.
Medtronic, a medical device maker, cut 500 jobs over the summer and plan another 500 for the end of 2013.
Other companies that have announced layoffs due to Obamacare include:
- Smith & Nephew - 770 layoffs
- Abbott Labs - 700 layoffs
- Covidien - 595 layoffs
- Kinetic Concepts - 427 layoffs
- St. June Medical - 300 layoffs
- Hill Rom - 200 layoffs
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In addition to the elimination of a number of America jobs is a shift from full-time to part-time workers.
A Florida restaurateur who operates roughly 40 Denny’s locations and five Hurricane Grill & Wings franchises intends to add a 5 percent surcharge to customers’ bills and slash most of the staff's time to fewer than 30 hours per week to offset costs beginning in January 2014 when the
Affordable Care Act is fully implemented.
Likewise, Applebee's and Papa John's have both announced the implementation of Obamacare could lead to damaging cuts in their worksforces. According to the new law, employers with 50 or more employees must provide government-mandated healthcare or risk a $2,000 fine.
Other companies looking to limit the hours of its workers include Darden Restaurants, owners of Red Lobster, Olive Garden and LongHorn Steakhouse; JANCOA Janitorial Services, and Kroger
These are just a few of the Obamacare taxes set to take effect in 2013:
- Medical device tax - a 2.3 percent excise tax on gross sales
- “Special Needs Kids” tax - puts a $2,500 cap on Flexible Spending Accounts
- Surtax on investment income - a new 3.8% surtax on investment income for individuals making at least $200,000 (households $250,000)
- “Haircut” for medical itemized deductions - raises the threshold to deduct medical expenses from 7.5% of adjusted gross income (AGI) to 10 percent
- Medicare payroll tax hike - raises Medicare payroll tax from 2.9% to 3.8%