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Business Owners Speak on Struggles with ObamaCare, Regulations

From their data, just how damaging the president has been to this economy becomes quite clear.

by
Patrick Richardson

Bio

August 18, 2011 - 8:56 am
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It’s not just health care killing jobs: state and federal regulations can amount to as much as 50 cents on every dollar a business makes, according to Jennifer James of Build with Conscience in California. She said the cost of regulation per employee to them each year is about $20,000:

We would like to hire three or four more guys, easy. We pay $15-26 per hour for new laborers and generally hire inexperienced young workers and train them because the cost of experienced men is too high. We’re not able to take on extremely qualified people, so we train young kids in the trades.

She said between increased health care costs and the contractor fees, they simply can’t afford to hire. She said licensing fees in California are so high many contractors are simply not paying them and working under the table. James said the contractors state board fee is $400, and total licensing fees are $8,000 to $10,000 a year:

A lot of business goes to unlicensed contractors who have no license, no insurance, and no bonding.

James said the fees are so high and the number of agents to enforce the law so low that it is a better risk to operating without a license for many contractors.

Annette Logsdon from Watertite Deck Coatings, also in California, said taxes, fees, and health care are killing them as well. She said they grossed about $400,000 last year, but workers’ compensation was $21,600 for the year — nearly 6 percent of gross:

The federal government is killing us on payroll taxes. … That 2 percent break (for a new employee) if you want to call it that, is a joke.

She said after ObamaCare passed, California raised taxes across the board 12 percent.

Additionally, regulations are hitting them on the inventory side. All their raw material suppliers have raised prices because government regulations have driven up their costs:

It’s indirectly affecting us. … We can’t give raises or hire new people.

All of the business owners had basically one message: “get out of our way.” It’s clear that the more regulation the government heaps on business, the fewer jobs will be created.

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Patrick Richardson has been a journalist for almost 15 years and an inveterate geek all his life. He blogs regularly at www.otherwheregazette.com, which aims to be like another SF magazine, just not so serious.
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