Retribution Time is Near

As more and more details on the new national healthcare law, commonly referred to as ObamaCare, become available, it’s apparent that the manufacturing sector, especially the medical device manufacturing sector, is going to see profitability erode.

Now, it is not my intent to take a political position with this column. However, based on the actions of the current administration and Congress, coupled with its disregard for the manufacturing sector, I strongly believe that come November we need to send a message to every politician running for re-election that was even remotely involved with the passage of this healthcare reform. Paybacks are hell, and those who failed to represent us in Washington need to know that we can no longer support them with our vote.

In a report issued June 23, 2010, ObamaCare, Three Months of Broken Promises, Rep. John Boehner (R-OH) states that by signing ObamaCare into law, President Obama effectively signed pink slips for millions of American workers who will lose their jobs or be denied new jobs. Economist Diana Furchtgott-Roth, director of the Hudson Institute’s Center for Employment Policy echoes that comment by saying: “The sheer size and cost of the healthcare bill will inevitably lead to a larger share of the economy under government control and higher government spending. Taxes will rise, diminishing incentives to work, invest, and create jobs. Government controls on insurance premiums and healthcare expenditures will stifle innovation in pharmaceuticals, medical devices, and the delivery of health care services.” Interestingly, Furchtgott-Roth was one of more than 130 top economists to sign a statement warning that the healthcare bill contains a number of provisions that will eliminate jobs, reduce hours and wages, and limit future job creation.

Now, if you’re thinking that Rep. Boehner is just a frustrated member of the GOP going against the current administration and the Democratic Congress, think about the mega-corporations that have already stepped forward declaring that they will have to make painful changes to comply with the law. Corporations like AT&T, Deere & Co., Boeing, 3M, Eaton, Honeywell, and many more have publicly identified staggering losses stemming from tax hikes associated with the government controlled healthcare system, and they are willing to testify at a Congressional hearing if required.

Furthermore, the Small Business Healthcare Tax Credit, promoted by Washington to help offset the cost of tax hikes, is very restrictive and requires small businesses to meet three complicated tests to qualify for any portion of the credit.

Only companies with 10 employees or less will be considered for full credit. However, the credit is then tied to the average wage of employees. Only companies who pay their employees $25,000 or less are eligible for full credit. Finally, only firms covering 50% or more of insurance costs will be eligible. Based on the criterion, it is estimated that only 12% of the small business population would benefit in any way, shape, or form.

Small business owners wanting to take advantage of this credit are essentially discouraged from increasing wages and hiring additional workers. In other words there is no encouragement to grow their business.

Today more than ever, our vote is vital to the future of manufacturing. So let’s not throw it away on someone whose interests are not in tune with the backbone of our economy.

Yes, retribution time is near, and come November, these politicians will hopefully be seeking new employment opportunities.