Jun
15
2013

Obamacare is a tax on employment.

Here, let me help wreck your weekend for you.

Postulated: If you wish to see more of something, you subsidize it; if you wish to see less of something, you tax it. I assume that we are all on board with this, yes? – After all, this has been a major point used to justify sin taxes for, well, my entire life. In other words… “tax it out of existence” is a sentiment that is not exactly unique to this post.

Which leads to this observation from Andy Puzder, head of the company that operates Hardees and Carl’s, Jr:

About 40% of [CKE Restaurants CEO Andy] Puzder’s employees are part-time and therefore exempt from ObamaCare’s coverage mandates. “That percentage of employees will probably go up. Everybody is hiring more part-time employees,” he says, though he is quick to add that “we’re not firing anyone to hire” part-time workers. “Through attrition, three full-time employees go away and you hire four part-time employees who basically have the same hours.”

Mr. Puzder also expects fast-food restaurants to deal with ObamaCare by replacing workers with kiosks. “You’re going to go into a fast-food restaurant and order on an iPad or tablet instead of talking to a person because we don’t have to pay benefits for any of those things.”

If you tax something, you get less of it. And the universe is fundamentally disinterested in how unfair that is. The g0vernment has decided to impose a significant new tax on employing new workers. If the tax was lower, less employers would look for alternatives to paying that tax; if the tax was, God help us, higher then more employers will start looking for alternatives. And the average employer is usually far more worried in making payroll than s/he is about getting the approval of, say, a hardcore online progressive who’s secretly bitter that the entire thing isn’t actually single-payer anyway. And as well they should: recent scandals aside, the IRS doesn’t consider Democratic/liberal plaudits to be actual legal tender.

All of this is what we in the punditry business call objective reality. It’s a fascinating place to live, objective reality: I often wish that what passes for philosophers among the Democratic base would visit it more often.

(Via Hot Air)

Moe Lane (crosspost)

3 Comments

  • acat says:

    So .. more technology and less humans at the front of fast food places .. that’s not good.
    .
    I can see an upside for those that have jobs and iPhones and cars and can understand how to use apps, and afford gas and cell plans and cheeseburger runs … punch your order into the app, hop in the car, and your Super Bacon $6 Cheeseburger, hold the tomatoe, will be waiting for you.
    .
    For those who eat at Carls Jr. because it’s cheap and it means more time to work a second job instead of cooking, well .. it may mean – like ordering at the drive-thru – that sometimes you get a PFY* in the building with a headset, and sometimes you get a grandma in a phone bank in Idaho who takes your order and sends it to the PFYs in the back room via the internet…

    It’s going to be an interesting world.

    * Pimply-Faced Youth – classical reference.

  • Jeffstag says:

    Here’s an interesting story that relates. About a month ago, we were in the drive thru at Wendy’s and it’s taking forever. We know the girl that works the window so when the wife asks here what the deal is, she leans out and gives us the dish (there were no other cars behind us). She says it’s all because of Obamacare. Everybody is now limited to no more than 20 hours a week. Within a week of this announcement, they lose their general manager, a shift manager and two employees that had worked there for 10 and 15 years (that alone was depressing, but not the point). They lost all the experienced people and had then had to hire more people to cover all the hours so practicaly everyone was new. She said they were so disorganized she didn’t understand how there would even be a Wendy’s there anymore if they kept going the way they were.

  • jbird says:

    You know they’ve got those at Wawa already. You may have seen some clips of Romney’s speech on the technology during the campaign. . .

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