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So how does Small Business feel

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dbucfan:
http://www.gallup.com/poll/160100/healthcare-costs-taxes-worry-small-businesses.aspx

wreck ship:
I question any report like this that doesnt have energy/gas at the top of all concerns. It's an expense that businesses incure from contractors and customers, not to mention your own over head cost. But hey, it cost money to make money so...

John Galt?:

--- Quote from: wreck ship on January 25, 2013, 02:43:20 PM ---I question any report like this that doesnt have energy/gas at the top of all concerns. It's an expense that businesses incure from contractors and customers, not to mention your own over head cost. But hey, it cost money to make money so...

--- End quote ---


Let me explain

Ma & Pa own a restaurant with 55 full-time employees. Their monthly income statement looks like this:

Revs:           $330,000

Cost of goods sold             $100,000
Labor                                $120,000
Rent                                 $40,000
Electric and Gas               $10,000
all other                            $45,000

EBIT            $15,000

Taxes                               $5,700

Net Income   $9,300

Now if energy cost rise 25% that is a $2,500 increase in cost. Bearable but not great.

But with Obama care Labor costs will increase $22,000 (~$400 * 55 employees) so either FIRE 6 people or lose $7,000/mo.

I guess the good news for them is they won't have to pay that $5,700 in income taxes anymore. Where the Gov. will make up that lost revenue? No problem just borrow it!!!

Rusty:
JG, you wonder who in our government does the financial ẃhat if' modeling. Your horseback math example is pretty straight forward and doesn´t require a PHD from Wharton to understand. Strike one, less payroll taxes, strike two, people on umemployment, strike three, youŕe out, principle plus 13% interest on the borrowed funds from China. Genius! Man that took 30 seconds of deductive reasoning.

dbucfan:
One wonders if Wharton is open - and if so, what in the hell are they thinking about this "plan"

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