July 11,2012

Press Contact:

Julia Lawless, Antonia Ferrier, 202.224.4515

American Small Businesses Alarmed by Job-Killing Mandates, Uncertainty of President’s $2.6 Trillion Health Spending Law

WASHINGTON - “Expect the cost of doing business to increase,” “negative for future employment, “consider not paying,” “a very bad situation,” and “fewer jobs” is how American small businesses – engines of job creation and economic growth – are talking about the over $675 billion in tax increases, burdensome red tape, and mandates included in the President’s $2.6 trillion health spending law. 

Here’s a closer look at what these American job creators have to say:

“Another issue for small business owners is the increase in taxes. Any additional tax on small business owners takes away money they could use to hire more employees. We have always provided good health care for our employees, with 100 percent of the employee premium covered by the company. Very low margin businesses such as restaurants, however, simply can’t afford to pay for health care for all of their employees. Having them pay penalties will result in higher costs to the consumer as well as lower ability to employ people, since the cost per employee goes up significantly,” wrote Eric Basu, CEO and president at Sentek Global Inc.  (Washington Post, July 2, 2012)

"Every small business owner is dealing with escalating costs of fuel and materials and everything is passed on to the consumer. That [the health law] will break the backs of the middle class. If businesses are forced to pay, they may dump employees. It will be a very bad situation for the economy in the long run," said Dana Grimes, owner of Premier Renovations in Greenwich, N.Y., which has one part-time employee.  (Wall Street Journal, June 29, 2012)

“Jim Amos, CEO and chairman of Tasti D-Lite, a frozen yogurt franchise that operates in 14 states as well as globally, is certain of one thing: The ruling will hinder growth in the franchise space. ‘It’s going to force franchisees to shift workers to part-time to avoid the 50-employee threshold,’ he said. ‘It will keep new owners and new openings on the sideline.’” (CNBC, June 28, 2012)

“This [Supreme Court] decision will be negative for future employment. We will look at hiring more closely and could increase temps as opposed to full-time personnel,” said Marc Schupan, CEO, Schupan & Sons, who provides health insurance to his employees. (CNBC, June 28, 2012)

"I have to consider not paying [for health insurance]” said Nick Balletta, owner of TalkPoint, a New York firm with just under 100 employees. (AP, June 28, 2012)

“…the Affordable Care Act creates further uncertainty for franchise candidates considering getting into business. This will result in fewer new franchise locations and fewer jobs,” wrote Catherine Monson CEO of FASTSIGNS International, Inc. and a member of the Board of Directors of the International Franchise Association in an op-Ed. (Washington Post June 29, 2012)

The Supreme Court ruling on the health law “…will force me to pause and rethink my immediate hiring, acquisition and expansion plans. In order to plan ahead, I need to know what future costs and regulations I will be facing. With the law intact, I expect the cost of doing business to increase and new regulations to be delivered by a federal government that doesn’t appreciate the daily challenges of running a business, ”wrote Kurt Summers, president of Austin Generator Service, a power generator sales, rental and services firm in Austin, Texas. (New York Times, June 28, 2012)