Tuesday, May 18, 2010

White Castle prepared to cut jobs because of Obamacare

That cut's it, now they are screwing with White Castle...

White Castle Exec: Obamacare Provision Would Cut Our Income in Half


May 17, 2010 1:29 PM

Forget about open-heart surgery or cutting-edge cancer treatments. Under Obamacare, you might have a hard time finding a hamburger. A statement released by White Castle, the Ohio-based burger chain, highlights how damaging Obamacare would be to small businesses and to Americans' job prospects.

White Castle reports that a single provision of Obamacare would cut its net income in half -- and then some.  Jamie Richardson, a White Castle executive, says, "We've been working on this internally from a number of different perspectives. One [provision] that has [us] the most concerned is the $3,000 penalty that kicks in when an employee's portion of a premium exceeds 9.5% of Household Income." Richardson elaborates, "In present form, this provision alone would lead to approximate increased costs equal to over 55% of what we earn annually in net income (based on [our] past 4-year average).  Effectively cutting our net income in half would have [a] devastating impact on the business -- cutting future expansion and more job creation at least in half.  Sadly, it makes it difficult to justify growing where jobs are needed most -- in lower income areas."  And that's all from just a single provision in a 2,700-page act.

The Obama administration's economic policy seems to involve dividing businesses into two categories:  too big to fail, and too little to matter.

No wonder Ohioans support repeal of Obamacare by 19 percentage points (57 to 38 percent).


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