Thursday, July 16, 2009

Here's Not to Your Health

As if the plight of small business in New York wasn't severe enough, along comes President Obama and this Congressional cohort to make things worse-and they claim they're doing it all for your health! As the NY Post reports this morning-making Joe the Plumber into a prophet: "Congressional plans to fund a massive health-care overhaul could have a job-killing effect on New York, creating a tax rate of nearly 60 percent for the state's top earners and possibly pressuring small-business owners to shed workers."

And, if small businesses are the engine that drives the economy, than the economy is about to be sent right off the rails. As we told the Post: "Richard Lipsky, a lobbyist for small stores and businesses in New York City, warned that "in the middle of a recession, it's a very strange way to legislate." According to what we've read, the House health-insurance plan would have a job-crippling impact on neighborhood stores and other small businesses because they put mandates on these businesses that would prevent them from hiring people because of the cost of the plan," Lipsky said."

How sick is that? It seems to us that Washington has failed to read the handwriting on the wall; and has anyone seen the unemployment rate in NYC, that has risen into the middle teens for the hardest hit minority groups? What Obama and his cohort of lemmings fails to realize is that the health of Americans encompasses the health of the businesses that keep folks employed and spending. With stimulation all the rage in Washington, few of the stimulators are taken cognizance of the impact of their schemes.

Higher taxes and more small business mandates are the death knell of a truly vibrant economy: "New York would become the third-most-hostile place for top earners to live under the proposed new surtaxes supported by House Democrats and championed by Rep. Charles Rangel (D-NY). Also hit would be individuals earning $280,000 annually and families making $350,000 a year. The profits from small businesses would also be taxed on the back end."

The end result? A compelling invitation for the enterprising to get the hell out of New York in search of a less taxing environment to live and do business. And the Washington shenanigans has even got us right on the same page with the Partnership's Kathy Wylde: "If the House plan passes, Wylde said, "There literally, at this point, is very strong reason to relocate your family and your business outside New York."

But it's NY's small businesses that are really in the eye of this storm-and the House bill in particular is pernicious; and a good reason for Charlie Rangel to resign from office. How can this guy still claim to represent New York? We'll give the Business Council's Michael Moran the final word on this: "A lot of small businesses would be hit with the penalties for not insuring workers and get hit with the surtaxes, Moran warned. "Many small businesses file their business taxes under personal income," he said. "That's the way the tax law is written. Small business, which is really where most of the job creation takes place, could be hit hard."