New IRS rule: Businesses are not allowed to say that they laid off employees because of Obamacare
It could be stated, without hyperbole, that this should be considered outrageous by every American, regardless of political leanings. Hidden in all the hullabaloo surrounding the unconstitutional move by President Obama to literally rewrite existing law by picking and choosing how he will enforce it, is the fact that the IRS will now require businesses to swear, under threat of perjury, that any downsizing they might have had to do throughout the year was not due to Obamacare…even if it was. Un. Be. Lievable.
From Fox News:
Is the latest delay of ObamaCare regulations politically motivated? Consider what administration officials announcing the new exemption for medium-sized employers had to say about firms that might fire workers to get under the threshold and avoid hugely expensive new requirements of the law. Obama officials made clear in a press briefing that firms would not be allowed to lay off workers to get into the preferred class of those businesses with 50 to 99 employees. How will the feds know what employers were thinking when hiring and firing? Simple. Firms will be required to certify to the IRS – under penalty of perjury – that ObamaCare was not a motivating factor in their staffing decisions. To avoid ObamaCare costs you must swear that you are not trying to avoid ObamaCare costs. You can duck the law, but only if you promise not to say so.
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Let’s sum this up. Obamacare forces individuals and companies to provide costly health insurance for their employees. Any company not doing this will be penalized, er, “taxed” for non-compliance. This mandated insurance purchase, which has already begun for individuals, was supposed to have already started for companies too, but was unconstitutionally delayed twice by Obama (remember, he’s not a king. He doesn’t get to even change a misplaced comma in a law passed by Congress).
The problem, however, is that the administration knew for a fact (it is an unavoidable fact) that businesses were going to adjust their hiring and firing to minimize the damage done by the new Obamacare penalties and regulations just like they do for every other government regulation and tax. And since companies that employ between 50 and 99 people will be exempt from the penalty for another year, they have a huge incentive to keep the number of people they employ at under 100. In other words, if a company employs 99 people, they would be crazy to hire anyone because they would then be subject to all the regulations, taxes and other red tape that accompanies Obamacare. Similarly, if a company employs, say, 106 people, that company has a massive incentive to fire 7 people in order to get its number of employees below the arbitrary 100 mark.
Businesses must consider taxes and regulations when making financial decisions. This should be obvious to even the most economic illiterate among us. But here’s the rub, the Obama administration doesn’t want Obamacare blamed for the high unemployment rate and lingering sluggish economy…even though it IS to blame. So they came up with a wonderfully awful plan to avoid this: don’t allow businesses to say that Obamacare was the reason they fired/did’t hire employees…even if it was the reason. If this isn’t totalitarianism, I don’t know what is. The government hands down burdensome regulations to companies and forces them to lie about how it affects them. Joseph Stalin himself couldn’t have thought of a better solution to this problem.
I honestly don’t know how even the most ardent Obama supporter could possibly defend this.