Obama’s Affordable Care Act assesses a $3,000 penalty onto employers for each employee working over 30 hours per week without an “ACA Compliant” health care benefits plan.
A simple spreadsheet from any CPA will tell employers that the new work-week will now be 29 hours to avoid (but not evade) the Obama Affordable Care Act tax.
Workers previously earning $7.25 per hour for 40 hours per week would cost their employers $18,080 per year, to take home $15,080, before tax. The ACA tax represents a 20% increase in cost to their employer from $7.25 to $8.69 per hour.
Instead of paying the ACA tax, workers’ hours will be reduced.
Those now working 40 hours and earning $7.25 per hour will now work 29 hours per week and have a 28% decrease in their annual pay from $18,0850 to $10,933. Although twice as many people may be employed, these poverty-level wages will become the “new normal”.
Workers who previously worked 58 hours per week and earned $35,045 per year with overtime will see their wages drop by 60% to $10.933.
Employers will just re-define their work hours: 7 four hour shifts per week, or 4 seven hour shifts per week to make this work to keep paid hours under 30.
And they will.
Working Americans will be reduced to poverty-level wages under Obama’s ACA.
Free healthcare is not “Free”. Obama’s ACA carries a hideous cost to America’s workers.