Research Briefing

ObamaCare A Big Hurdle For Job Creators And States

OBAMACARE “JUST ANOTHER BLOW” TO JOB CREATORS …

Missouri Tanning Salon Owner Calls The Tax “A Hurdle” That “Doesn’t Help” Small Business Owners Who Are Already Struggling. “Tina Burger, owner of Sun-Sations in Jackson, hopes businesses like the mom-and-pop salons don't shut their doors because of the tax. … ‘Being a small-business owner, you're already trying to turn a profit during hard economic times,’ Burger said. ‘And then when you hit a hurdle like this, it doesn't help.’” (Brian Blackwell, “Area Tanning Salons Oppose 10 Percent Tax That Takes Effect July 1,” Southeast Missourian, 4/30/10)

• Another Missouri Tanning Salon Owner Says ObamaCare’s Tanning Tax “Is Just Another Blow To Small Business.” “Angela DeProw, owner of Under the Sun in Cape Girardeau, believes the tax on her industry couldn't come at a worse time, when the nation's estimated 18,000 tanning salons are falling on hard times. ‘The indoor tanning industry as well as other industries have been negatively affected by the economy,’ DeProw said. ‘The added 10 percent tax on indoor tanning is just another blow to small business and will negatively affect the consumers' buying decisions.’” (Brian Blackwell, “Area Tanning Salons Oppose 10 Percent Tax That Takes Effect July 1,” Southeast Missourian, 4/30/10)

Hickory, NC-Based CommScope Inc. Took A $2.3 Million Hit Because Of ObamaCare. “CommScope Inc., a global leader in infrastructure solutions for communications networks, reported sales of $721.6 million and a net loss of $22.1 million, or a loss of $0.23 per share, for the quarter ended March 31, 2010. … The income tax benefit for the quarter includes a $2.3 million charge related to changes to the deductibility of prescription drug benefits to certain retirees (Medicare Part D) made as part of the U.S. health care reform legislation enacted in March 2010. Excluding this charge and other special items, the effective tax rate on adjusted pretax income was 42.8 percent.” (CommScope Inc., “CommScope Announces First Quarter 2010 Results,” Press Release, 4/29/10)

David Dranove, Professor At Northwestern University’s Kellogg School Of Management, Calls Out Obama, Top Dems For Falsely Claiming Government-Run Health Care Will Be Good For Businesses. Dranove: “The Business Roundtable released a report in the fall about how health-care reform could save Corporate America $150 billion a year. This was the report that President Obama, Henry Waxman, and other Democrats used to tout the benefits of health-care reform to the private sector. It itemizes nine things that could save Corporate America billions of dollars. Out of those nine things, the health reform package that Congress passed contained one of them.” (“What Health-Care Reform Really Means For Big Business,” BusinessWeek, 4/29/10)

• Dranove Says Government Involvement In Health Care Is “A Bad Thing.” Patricia O’Connell: “There has been a lot of concern about the government getting involved in health care, so is that a good thing or a bad thing?” David Dranove: “A bad thing.” (“What Health-Care Reform Really Means For Big Business,” BusinessWeek, 4/29/10)
• Dranove Says Health Care Reform “Shouldn’t Be Left To Bureaucrats” And Adds “The Government Has Made It Harder For The Private Sector To Succeed With Cost-Containment.” Patricia O’Connell: “So much of what is being done about health-care reform is being left to the people who are in charge of Medicare and Medicaid. Does that make you feel optimistic or pessimistic?” David Dranove: “Pessimistic! This shouldn't be left to bureaucrats. I think the government's involvement has made it more important than ever for the private sector [to pay attention and be involved]. I think the government has made it harder for the private sector to succeed with cost-containment.” (“What Health-Care Reform Really Means For Big Business,” BusinessWeek, 4/29/10)

WHILE WYOMING’S DEM GOVERNOR DECIDES TO OPT OUT OF COSTLY OBAMACARE PROVISION

Today, States Have To Decide If They Want To Participate In ObamaCare’s High Risk Pool. “Friday is the deadline for states to tell the Obama administration whether they want to run the high-risk insurance pool for uninsured people with pre-existing conditions, or whether they will leave the task to Kathleen Sebelius, the secretary of health and human services.” (Robert Pear, “States Decide On Running New Pools For Insurance,” The New York Times, 4/29/10)

Gov. Dave Freudenthal (D-WY) Says His State Will Opt Out Because Federal Funding “May Prove Insufficient.” “But Republican officials in Georgia, Indiana, Nebraska and Nevada turned down the opportunity to run the high-risk pool, as did at least one Democratic governor, Dave Freudenthal of Wyoming. Mr. Freudenthal said he worried that his state’s federal allotment of $8 million ‘may prove insufficient’ to subsidize coverage for the next three and a half years.” (Robert Pear, “States Decide On Running New Pools For Insurance,” The New York Times, 4/29/10)