8th District News
Rep. Kevin Brady, a senior member of the House Ways and Means Committee spoke about his efforts to reform the corporate tax system in a way that enables companies doing business internationally to repatriate their profits back to the United States at a forum sponsored by Politico.com.
Today at noon an event at The Heritage Foundation will focus on the burden the Obamacare law places on the ability of small businesses to hire and grow and the individuals’ ability to find employment. Research by The Heritage Foundation has uncovered 10 examples of job loss due in whole or part to Obamacare and its consequences:
Medical Device Tax
- 1,000 jobs lost: “Stryker Corporation Confirms Obamacare Layoffs.”
- 275 jobs lost: “Medical Device Tax Blamed for Welch Allyn Layoffs.”
- 100 jobs lost: “Latest Obamacare Casualty: 100 Workers at Smith and Nephew.”
The 2.3 percent excise tax on the sale of medical devices, one of the 18 tax hikes in Obamacare, is estimated to cost the industry over $29 billion between 2013 and 2022. Many employers in the industry are compensating for the tax hike by reducing their labor costs.
Medicare Payment Cuts
- 950 jobs lost: “Wake Forest Baptist Medical Center Reengineers Cost Structure, Eliminate Positions.”
- Up to 400 jobs lost: “Orlando Health to Cut Record Number of Jobs to Save Money.”
- 52 Jobs lost: “Delaware Hospice Lays Off 52 Workers amid Federal Changes.”
- 58 jobs lost: “Hospital Layoffs and the Affordable Hea[l]th Care Act.”
Obamacare reduces Medicare spending by $716 billion from 2013 to 2022, with a majority of the payment reductions hitting Medicare Part A providers, which includes hospitals, hospices, skilled nursing facilities, and nursing homes. As these providers are trying to do more with less federal reimbursement, they are laying off their employees to cut down costs.
If Obamacare’s rates remain law, the Medicare trustees predict, “the lower Medicare payment rates would result in negative total facility margins for an estimated 15 percent of hospitals, skilled nursing facilities, and home health agencies by 2019, and this percentage would reach roughly 25 percent in 2030 and 40 percent by 2050.” The payment cuts are simply not sustainable.
- At least 7,386 full-time jobs turned part-time: “State Grapples with Insurance Rules for Part-Time Workers.”
- 400 full-time jobs turned part-time: “Health Care Law Brings Double Dose of Trouble for CCAC Part-Time Profs.”
- 300 full-time jobs turned part-time: “Wendy’s Franchisee Slashes Employee Hours to Sidestep Obamacare.”
Obamacare’s employer mandate forces all employers with more than 50 full-time employees, defined as those who work at least 30 hours per week, to provide health insurance for employees or pay a $2,000 penalty for each employee after the first 30 workers. This creates an incentive for businesses to avoid both the penalty and cost of coverage by hiring part-time employees instead of full-time employees, since businesses will not be penalized for failing to provide health insurance to part-time employees. This affects a wide range of American workers, from restaurant employees and college adjunct professors to state government workers.
American workers already can’t afford the high price of Obamacare, and it’s just the beginning: The most egregious parts of the law don’t begin until 2014.
Rep. Kevin Brady and Rep. Bill Flores met with members of the Texas House of Representatives' Select Committee on Federalism and Fiscal Responsibility via videoconference. The group spoke about the federal budget sequestration and the impact of the federal budget on the State of Texas.
Kevin Brady was interviewed on Real News about a tax reform measure designed to repatriate corporate profits and investments back to the U.S..