Health insurance bad for business

Remember no new taxes unless you made more than $250,000. Well, the proposed new health care plan taxes businesses without health insurance. Any business that has a payroll of more than $250,000 would pay a new tax of 8 percent.

Payroll is not compensation; for instance, if one had a business with an owner-employee whose compensation is $60,000 and six other employees whose combined compensation is $200,000, the total payroll would be $260,000 even though the owner's compensation is only $60,000.

This example represents millions of hairdressers, barbers, gas stations, pizza parlors and restaurants across our country. How many people do you know who have a job like this? The 8 percent tax on payroll equals $20,800. This tax is imposed even if all the employees are covered by their spouse's insurance.

Does anybody believe the owner can buy health insurance for 7 employees for $20,800 a year? The owner is faced with a decision: reduce each employee's compensation by 8 percent or reduce the owner compensation by $20,800 or impose an individual tax increase of 35 percent.

Is this the hope and change you voted for?

Charles Bricker

Wheaton