The fact is [Obamacare] is very good for small business. It’s incredibly good for small business,” former Democratic National chairman Howard Dean said.

In a recent interview, the one-time Democratic presidential candidate and doctor said he believes Obamacare will boost job creation for small business.

“Most small businesses are not going to be in the health insurance business anymore after this thing goes into effect,” he added. “That’s going to be the biggest boost to small business that has been done in years and years and years,” he added, predicting that Obamacare will create 80 percent of all initial new jobs.

It sounds good. But it’s just not true.

The Heritage Foundation Marguerite Higgins briefly highlights some of Heritage’s work in the many ways in which Obamacare will destroy job creation including:

Costly Tax Hikes. Curtis Dubay writes that Obamacare imposes numerous new taxes, fees and penalties, transferring more than $500 billion over 10 years from hardworking American workers and their families to Congress. That’s money that could be spent in the private sector for companies to take out new loans, expand businesses and hire new workers. Instead, bureaucrats in Washington will use it pay for new entitlements and costly subsidies.

Employer Mandate Fines and Compliance Costs. Labor expert James Sherk points out that businesses with more than 50 workers must pay for the rising costs of health care coverage for their workers or face a penalty. Not only does this discourage smaller companies from expanding, but it also places mid-size businesses in uncertain territory. With the Health and Human Services Department still mulling what benefits must be covered in any health plan, companies have little idea how high health care premiums will go up in the next five years, making any business planning difficult. Additionally, the new administrative complexities from Obamacare will require many companies to incur more accounting and consulting expenses just to stay compliant with the law.

Less Opportunity for Low-Income Workers. Heritage analysts also note that many Americans earning close to the minimum wage will likely see less hiring opportunities as employers are required to offer them costly health coverage. In fact, research by Katherine Baicker and Helen Levy found workers earning within $3 of the minimum wage have a higher risk of losing their jobs because of the employer mandate.

On February 10, 2011, CBO Director Doug Elmendorf testified before the House Budget Committee that Obamacare will result in an estimated 800,000 fewer U.S. jobs. What is it going to take for President Obama and others to believe that the new taxes, penalties, and fees resulting from Obamacare will be negative and far-reaching on the economy?

We want to hear from small business owners. How do you think Obamacare will impact your business? Share your thoughts in the comments section below.

Comments (14)

Tom - September 28, 2011

I am 68 years old.
My income is derived from work I do for businesses that are reliant in large part on government subsidies.

Obamacare will not affect me a great deal.

I am on Social Security and Medicare.
It would be more difficult for me and my clients if these programs and subsideis were discontinued.

But if I were a legislator and the opportunity came up to vote to end these programs along with Obamacare I would do so in a New York minute because the are destroying my country!

We need to implement the primary purpose of our Constitution: to protect We The People from the long oppressive hand of government!

Gary - September 28, 2011

we are small enough not to run afoul of the 50 person rule, but we will never expand our business to the point where we will have 50 employees becuase of this law. should we get close, we will instead have to look at prioritizing business or automate to insure that we never reach this threshold. this law is terrible for the country, for jobs, for individual freedom, and foer the future economy.

martin - September 28, 2011

I feel that it will burden down our economy even more with regulations. I’m not sure if this will be the straw that breaks the camel’s back or not (total disaster of economy) It’s not health care that’s needs fixing, it’s our economy. If they fix that then everything else will gradually perfect itself; including our present wonderful health system. It appears obviously that Mr. Obama is deliberately trying to crush the Untied State s as a leading nation of freedom and blessing into some sort of monarchical dictatorship to slavery to His own communistic socialist ideologies. I hope that don’t become realty in the future. Or we may not have a country to call our own anymore…Pretty scary really.Thank God I know Jesus and he knows me. So I have peace anyway.

James V. Burnette - September 28, 2011

Obamacare and all of Obama’s policies are based on a “Rob Peter to pay Paul” theory. I’m sorry to inform the President that Peter has been robbed blind already and has nothing left. So whats your next step Mr. President?

Burma Workman - September 28, 2011

Yes, absolutely, Obamacare should be overturned. It should never have been forced upon the American people in the first place.

Appropriate reforms related to the medical industry are needed, to be sure. Obamacare is not appropriate!

Alfred J. D’Amario - September 28, 2011

Regarding the Supreme Court, I have received correspondence indicating that the US Supreme Court is quietly examining documentation regarding Obama’s citizenship and elligability to be President. Is there any truth to that?
For the record, I am against Obamacare and the Obama “Jobs” program. In fact, I’m against everything this Kenyan pretender proposes because his ultimate goal is to destroy the US by destroying our economy and our military.

Neal - September 28, 2011

REQUIRED READING The Blueprint – Culture of Corruption – Demonic – Obama Nation – Crimes Against Liberty – The Manchurian President – The Roots of Obama’s Rage – Revolt! – Control Freaks – Liberty and Tyranny – The Shadow Party – Obamanomics

Minuteman55 - September 28, 2011

Workers are worried that they will lose their current coverage such as eye care, chiropractic and dental care and that their premiums are going to go thru the roof. My wife would like to expand her business
but sees that it is a veritable mine field of laws and regs with no end in sight. So guess what no expansion.

JAMES GREEN - September 28, 2011


Drew Hopper - September 28, 2011

I own several franchised haircutting salons and employee over 50 full time stylist. I have spent years building this business taking finical risks (nearly bankruped) and now make $250,000 a year. My payroll is about $1 million a year. So now add another (50×3,000) $150,000 a year for heathcare penalties and I’m out of business! What should I do?! This is socialism I guess the government can take over my business!

Allen B - September 28, 2011

I believe mandate provision in Obamacare is unconstitutional. Further, the overall thrust of the law saddles Americans with a huge additional regulatory burden in the form of over 150 layers of bureaucratic agencies.

More regulation is the LAST thing Americans want or need.

Robert Sayes - September 28, 2011

Most small business men and women have told me that after almost three years of the little fool in the White House they are just keeping their heads above water. They all say that if”Obooba” is re-elected they will close the doors and quit, I will do the same.
If Obamacare is enacted, there will be no reason to have a business anymore. They will tax, and repress small business out of business.
Democrats are not for the little guy.

John R. Whalen - September 28, 2011

I help run a small construction buisness specializing in Metal Buildings. Due to the un-certainty and the rising costs of healthcare in the last two years, we layed off our local crews, too expensive, and sub-contract all erection and sheeting work. These workers are traveling from PA, WVA and So. MD. The taxes and health insurance have priced us out of using local labor. Our pre-dominate customer is the Federal Gov’t. The regulatory regime has become so oppressive, demanding responses with-in 12hours, it has become a burden impacting our ability to successfully bid on new work. THE FED’S ARE OUT OF CONTROL!

Bret Hopkins - October 2, 2011

We own and operate multi-family apartment communities including student housing in/around larger universities. Obamacare has a new tax of 3.2% to be levied on capital gains from disposition of hard assets like real estate. That new additional tax devalues real estate holdings and ultimately interest in investment in the sector, capital formation, and job creation in the housing industry. The housing industry, including multi-family is a very large industry and a very large employer or Americans. Again, Obamacare is anything but a a job creator and will reduce investment in America and capital formation and business expansion. Employers like us will limit their expansion plans to stay under the 50-employee magic number.

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