Monday, April 01, 2013

ObamaTax Good News/Bad News

First the "good news. Remember this?

"A fast-food chain is slashing employee hours so franchise owners don't have to pay health benefits"

Well, turns out that is the good news, at least for Dave's Place:

"Wendy's Co. (WEN) initially estimated the health-care law would increase the cost of operating each of its 5,800 U.S. restaurants by $25,000 a year. But Chief Financial Officer Steve Hare told an investment conference ... that executives have cut the estimate by 80%, to $5,000 a year, primarily because they expect many employees to decline the insurance offering."

So those lucky few who do keep their full-time positions will most likely play chicken with The ObamaTax, either because they see it as the waste that it is or because they can't afford the premiums.

Over at Popeye's, for instance, most of their eligible employees don't sign up for health insurance now, before the major rate increases necessitated by The ObamaTax, and company execs don't expect any uptick in that:

"Ralph Bower, Popeye's president-U.S ... doesn't expect many more employees to enroll next year"

Funny how that's working out, isn't it? It's almost like the folks who didn't read the plan before they passed it didn't understand how it would work in the real world.


[Hat Tip: FoIB Sam B]
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