Obamacare to cost small business 65% of its profits

It cannot be questioned that Obamacare is going to hit small businesses the hardest, just take this case as one example:

Baked in the Sun does about $8 million in annual revenue, however margins for bakers are tight so their annual profit is only about $200,000. Because the business has over 50 employees, they will be required to offer health insurance to their employees or pay a fine for not doing so. The owners estimate that the cost of compliance would be $108,000 per year plus $10,000 in overhead to manage the plan. The cost of paying the fine for not offering insurance would be $130,000. So they have a choice between losing 64% or 65% of their annual profits.

65% of their profits taken away due solely to Obamacare. That is quite a hit, don’t you think? Needless to say this leaves Baked in the Sun with only a few options if the company wishes to remain in business and turn a respectable profit: They can either decide to willfully be in violation of the healthcare law and pay a much smaller penalty than the $130,ooo it will cost to be in compliance with the law, they can reduce their costs by laying off employees, or they can raise the price of their goods to compensate for the additional costs of remaining in business. None of these options are particularly attractive, are they? And this is bound to happen to all small businesses with a small profit margin. This will not be an isolated example of what is to come as Obamacare becomes fully implemented.

And, according to the article linked above, Five Guys has also announced they would have to raise prices due to the soon to be incurred costs of complying with Obamacare. This is going to be the norm in the new America, we are all going to have to pay higher prices for goods and services and we have Barack Obama and the Democrats to thank for this, and of course the Republicans didn’t help by nominating the father of Obamacare, Mitt Romney, as their presidential candidate.

Elections have consequences and we are going to get what we deserve. If Mitt Romney and Barack Obama are the best presidential candidates America has to offer we are already doomed.