Papa John's and Obamacare

[IncendiaryGunner]

This is simple math.

The ACA made it more expensive to keep employees on the payroll.

Therefore, some businesses will make the decision to have fewer employees than the would have otherwise.

It's that simple. Period.

Is the sky falling? Is this the one thing that will destroy our economy? No. It's just one more government intrusion. We will keep piling them on that camel's back. Eventually it's going to break. But at least you will have made your true, if irrelevant, point that the ACA wasn't the only thing that caused it.

The ACA made it more expensive in some cases.

In many cases of higher paying jobs, employees will just take home less money.

The only sector that really gets hit hard is minimum wage employment.

Now, watch while many of the minimum wage companies crying butthurt - continue to operate and post profits.

Also take note, that I will no longer be subsidizing the ER visits of those minimum wage employees when I pay for my employee's health care benefits. Many people overlook the simple fact that in many cases, we were already subsidizing the uninsured.

 

[ATOMonkey]

The ACA made it more expensive in some cases.

In many cases of higher paying jobs, employees will just take home less money.

The only sector that really gets hit hard is minimum wage employment.

Now, watch while many of the minimum wage companies crying butthurt - continue to operate and post profits.

Also take note, that I will no longer be subsidizing the ER visits of those minimum wage employees when I pay for my employee's health care benefits. Many people overlook the simple fact that in many cases, we were already subsidizing the uninsured.

So, it's good that I take home less pay?

I don't think I'm understanding your point.

 

[88GT]

My tenants will have less in their pockets one way or the other. All rents are going up by 4%.

 

[steveh_131]

My tenants will have less in their pockets one way or the other. All rents are going up by 4%.

I guess the real problem is with your business model, huh.

 

[88GT]

I guess the real problem is with your business model, huh.

Why would you say that?

 

[steveh_131]

Why would you say that?

It's been implied (upthread) that these businesses are only laying people off due to a failed business model, not because of this legislation.

I can only assume that the same is true of you.

 

[88GT]

It's been implied (upthread) that these businesses are only laying people off due to a failed business model, not because of this legislation.

I can only assume that the same is true of you.

[STRIKE]On what would you base your assumption?[/STRIKE]

Er. NM. I think I follow now, sorry. I think I misunderstood the direction of your sarcasm. (At least I hope that's what it is.)

 

[hornadylnl]

What, exactly, is your point?

My point is that the ACA is damaging for small businesses and the economy.

Companies are laying people off, and they did it immediately after Obama was re-elected and they realized that the ACA was here to stay. I've provided a lot of examples of this.

The CEO of Papa John's also agreed with this. If you have more than the maximum number of employees, it may make sense for you to lay off a few to prevent the enormous added costs of funding health insurance for all the rest of them. Like he said, it's 'Common Sense'.

So is your point that the ACA is not causing this damage? Or the damage it will cause is too small to be relevant? Because both links provided by the OP suggested that it would most certainly cause layoffs.

If it took them to see Obama reelected to figure out Obamacare was here to stay, they're not very intelligent.

 

[daddymikey1975]

My tenants will have less in their pockets one way or the other. All rents are going up by 4%.

Not being snide or rude, but are you saying that SINCE the tenants will have less in their pockets, it will feel like a rent increase or are you actually increasing your rents by 4% ?

If you are increasing the rents, what is the reasoning for doing so ? It appears as though it's because of the 'less money in their pockets' .. or did I miss something ?

 

[88GT]

Not being snide or rude, but are you saying that SINCE the tenants will have less in their pockets, it will feel like a rent increase or are you actually increasing your rents by 4% ?

If you are increasing the rents, what is the reasoning for doing so ? It appears as though it's because of the 'less money in their pockets' .. or did I miss something ?

They will have less money in their pockets AFTER paying rent. Rent is going up 4%. Money in this instance equals disposable income.

I am increasing rents because of the increasing cost of doing business due to the new tax.

 

[Solitaire]

They will have less money in their pockets AFTER paying rent. Rent is going up 4%. Money in this instance equals disposable income.

I am increasing rents because of the increasing cost of doing business due to the new tax.

How does the ACA affect landlords?

 

[steveh_131]

ObamaCare Increases Income Tax - Perspectives - Inside INdiana Business with Gerry Dick

New Medicare Contribution Tax

Also beginning in 2013, a new Medicare contribution tax of 3.8% will be imposed on investment income, which includes interest, dividends, capital gain, net rental income and all other passive income. This is in addition to the ordinary income or capital gain tax that investment income is already subject to. The new tax will only be imposed on individuals with adjusted gross income above $200,000 ($250,000 for joint filers).

 

[Survivalcookie]

Nobody is lying. I think you are confused.

In one story, dated 11/14/12, Papa Johns said that the business MIGHT have to cut hours.

In the other story, the interview with Papa John, dated 11/20/12, he clarifies his position, stating that he doesn't control the business practices of the franchisee, but that a cut in hours would be common sense.

In the last part of the second story, he says that Papa John's full time corporate employees and employees at company owned stores will continue to receive health benefits as always.

There is always a potential for some inaccuracy in journalism, regardless of source. However, I don't see an inherent conflict between the sound bite on 11/14/12 and the actual interview and clarification on 11/20/12.

Point is, it amounts to 5 cents a pizza. It seems that the fall of America brought on by the ACA is being reported a bit prematurely.

I don't think it is premature...I know many business owners who are now trying to decide to cut employees or cut hours and benefits....Poppa johns runs on a skeleton crew...they don't need a vast number of people with different skills to make and deliver pizzas.

 

[daddymikey1975]

They will have less money in their pockets AFTER paying rent. Rent is going up 4%. Money in this instance equals disposable income.

I am increasing rents because of the increasing cost of doing business due to the new tax.

ObamaCare Increases Income Tax - Perspectives - Inside INdiana Business with Gerry Dick

That makes sense. I was unaware of this, although, it says 'net' rental income.. On paper, you need to lose more money

 

[88GT]

That makes sense. I was unaware of this, although, it says 'net' rental income.. On paper, you need to lose more money

To be honest, we aren't in the $250K+ bracket. But the tenants don't know that. And I don't have the sensitivity problem some do about using my business to make a political statement, especially when I think all but maybe two of my tenants voted for Obama.

And they haven't had a rent increase in several years anyway. One was coming one way or the other. It's just a benefit to be able to connect some dots.

 

[Herstal]

To be honest, we aren't in the $250K+ bracket. But the tenants don't know that. And I don't have the sensitivity problem some do about using my business to make a political statement, especially when I think all but maybe two of my tenants voted for Obama.

And they haven't had a rent increase in several years anyway. One was coming one way or the other. It's just a benefit to be able to connect some dots.

So, you're going to lie and say you're raising rents because OBAMA? Why not leave out the lie? I mean, if telling a lie to make a political point is acceptable, then why did those libertarians murder every toddler in that daycare? What about the green party people who clubbed a hundred baby seals to death? John Kerry didn't earn that Medal of Honor... oh wait, lies for political advantage are apparently already accepted.

FTS.

 

[Solitaire]

To be honest, we aren't in the $250K+ bracket. But the tenants don't know that. And I don't have the sensitivity problem some do about using my business to make a political statement, especially when I think all but maybe two of my tenants voted for Obama.

And they haven't had a rent increase in several years anyway. One was coming one way or the other. It's just a benefit to be able to connect some dots.

Well, this certainly is a window into your soul. A little accidental honesty, perhaps?

 

[Bill of Rights]

So, you're going to lie and say you're raising rents because OBAMA? Why not leave out the lie? I mean, if telling a lie to make a political point is acceptable, then why did those libertarians murder every toddler in that daycare? What about the green party people who clubbed a hundred baby seals to death? John Kerry didn't earn that Medal of Honor... oh wait, lies for political advantage are apparently already accepted.

FTS.

I don't think she's lying here. She is not-telling something (her tax bracket, to her tenants, of whose business it is none) and she is not-telling them that a rent increase was coming, again, none of their business. When it happens, they have the choice of paying her new rate or living elsewhere. That she had not announced the increase prior to the election is her choice... Does every business share the process of every decision with every employee and customer? Of course not. Bottom line, she has a right to make a profit at her business, otherwise, what's the point of having the business? That the business decision will hit the tenants who she thinks voted for Obama in a way they won't like... that is, shows them how hollow "hope and change" are... is merely an added benefit to the increase, not the reason for it. (If you're driving to the store and, in a mood for ice cream, pass right by a Baskin-Robbins shop on your most direct route, did you go that way solely because of the ice cream shop, or was it just fortuitous that the shop happened to be built there?)

Well, this certainly is a window into your soul. A little accidental honesty, perhaps?

As above, are you of the opinion that a business owner has no right to make a profit at her business? Or are her tenants in some way forced to live in her properties and thus, a captive population to her predatory whims?

88GT, I should note that that last sentence was not meant to be insulting to you, as I think the rest of this post makes clear. Just in case, though, I mean no ill by the statement, nor do I consider you as a business owner (or any other way) to be predatory.

Blessings,
Bill

 

[PistolBob]

Oh for craps sake...grow up. Every business in the country will be raising consumer prices to pay for the "affordable" care act, also known as Obamacare. When business incurs higher expenses, their customers pay for it, always. This is no big secret, and any business claiming they will have to make adjustments to pay for it are only stating the obvious. Our only hope is for congress to repeal it, and there is no way in hell that is going to happen with the congress we currently have.

In 2013 if you are making upper 30's to low 40's you're going to be better off quitting your job, and sucking the tit of Uncle Sam. There is no reason to even try to excel, you'll just get blamed for everything and then your assets will be re-allocated.

Soon, mediocrity will be the best we can hope to be.

 

[poptab]

That depends on the elasticity of the good.

AlsO, i find it funny people still think that there is a free market.
The free in free market refers to free as in freedom not as in free lunch.

Freedom in the market was murdered a long time ago.

/deby downer