Saturday, March 28, 2015

Owner of about a dozen IHOP restaurants sells them due to Obamacare costs

Yes, Scott Womack, who testified against Obamacare before Congress, is still in business—but Obamacare is taking its toll. He has sold off full service and switched to more restaurants with hourly employees to avoid the mandates.  Is this sound business practice, Mr. President?

The Affordable Care Act created an employer mandate, which was supposed to go into effect Jan. 1, 2014, but was delayed for one year by the Obama administration. The mandate requires companies with more than 50 employees to offer “adequate” coverage or face a tax penalty.

Even though he reduced his labor costs by moving into quick-service dining, Womack still took a sizable hit on health insurance. His insurance provider boosted rates by 40 percent in one year, forcing him to cut back on coverage.

He offered the plan to all 180 employees. Only two of the 140 hourly workers signed up. . .

Rather than helping existing and aspiring franchise owners expand by adding jobs, locations and more hours for their employees who need them most,” said spokesman Matthew Haller, “the law’s arbitrary definition of ‘large employer’ and ‘full-time work week’ have contributed to the steady increase in part-time employment in America and have been a drag on new franchise business formation.”

Americans spend 4.3% of their household income on “food away from home.”  Looks like as that cost goes up,  more Americans will be fixing dinner at home.  Fewer people will be working in the restaurant industry, which helped many students and housewives bring in some extra dollars.  That might pay off in obesity.

Speaking of delays, there have been more than 49 significant changes made to the Patient Protection and Affordable Care Act: at least 30 that President Obama has made unilaterally, 17 that Congress has passed and the president has signed, and 2 by the Supreme Court. Why?  Because 1) it’s unworkable on a national level for businesses of all types, and 2) as special favors for those who support the president’s policies.

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