Taxes, regulations hurt businesses too
To the editor:
I enjoyed Ron Bourque's article on Obamacare (“Will Obamacare help us compete internationally?” Nov. 1-14 NHBR) but that's just the tip of the iceberg.
I know lots of business leaders who're cutting employee hours to avoid the Obamacare mandate, but that's not the only obstacle to job creation. They don't talk about it because it's not politically correct, but they're doing it.
I have a friend who's an employment manager at a local BJ's. She can't find workers because it's hard to compete with welfare and unemployment benefits.
Then there are the alphabet soup agencies -- OSHA and friends who regulate factories. The Economist has estimated that regulation costs a small factory at least $10,000 per employee. That's before the employee does a lick of work. How can manufacturers compete with that? True, some manufacturing is coming back to the U.S. as Chinese wages rise and shipping costs go up, but most of the factories are automating as much as they can to minimize employment. Every employee not hired avoids Ron's Obamacare costs, too.
Then there's New Hampshire taxes. I have a friend who's been involved in more than 100 startups. Some time back, our Legislature considered a tax on businesses which he would have had to pay even if the business wasn't profitable. A number of his startups were still in the break-even stage. Being threatened with a retroactive tax he couldn't pay, he shut down a number of businesses. Not too many jobs were lost, but some of these firms might have made it.
Our politicians have no clue how hard it is to operate a business. As they keep heaping more and more load on the private sector, fewer jobs are created. What will they do when there aren't enough businesses to tax?
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