The Leader Board
Mar 20 2012
The Dem Health Law Will Result In 'A Reduction Of 800,000 Workers' According To The Congressional Budget Office Director
CBO Director: 'A Reduction Of 800,000 Workers'
QUESTION: "In your estimation, the health care law would reduce employment by 800,000… DOUGLAS ELMENDORF, CBO Director: "Yes… there would be a reduction of 800,000 workers." (U.S. House Of Representatives, Budget Committee, Hearing, 2/10/11)
- QUESTION: "The last question is, it's been argued and was argued here yesterday with the chairman, that the new health care law will create jobs and increase labor force participation. But if I recall from your analysis, it was quite the opposite. Is that not the case?" DOUGLAS ELMENDORF, CBO Director: "Yes." (U.S. House Of Representatives, Budget Committee, Hearing, 2/10/11)
"Arguably the biggest impediment to hiring (particularly hiring of less skilled workers) is healthcare reform, which has the added drawback of straining state and Federal budgets… By raising the cost of labor, healthcare reform systematically discourages hiring, especially of low-wage workers whose mandated benefits are high relative to their wages." ("Great Suppression II," UBS Research, Pgs.1, 5, 9/19/11)
'A Death Sentence' - Thousands Will Lose Their Jobs
MEDTRONIC: 'Net Employee Loss Will Be About 2,100'
- "ObamaCare Day One… Medical device maker Medtronic warned that new taxes on its products could force it to lay off a thousand workers." (Editorial, "ObamaCare Day One," The Wall Street Journal, 3/25/10)
- "Medtronic spokesman Brian Henry on Thursday told Twin Cities Business that about 700 employees accepted voluntary retirement or early separation offers that were made available in February. In addition, about 1,700 employees from the entire company—across all levels, geographies, and business segments—were laid off. Henry said that about 300 of the eliminated positions will eventually be refilled, meaning that the net employee loss will be about 2,100." ("268 Local Medtronic Workers Part Of Worldwide Cuts," Twin Cities Business, 4/28/11)
ABBOTT LABS: 'Will Cut About 1,900 Jobs'
- "Abbott Laboratories, maker of the rheumatoid arthritis drug Humira, said it will cut about 1,900 jobs… the job cuts come 'in response to changes in the health- care industry, including U.S. health-care reform and the challenging regulatory environment,' Abbott said in the statement." ("Abbott Labs Cuts 1,900 Jobs After Health Overhaul Prompts Restructuring," Bloomberg, 1/26/11)
- "Abbott Chairman and Chief Executive Miles White blamed the layoffs on the pressure of federal regulators as well as the impact of the health care overhaul law." ("State To Bear Brunt Of Abbott's Job Cuts," Chicago Tribune, 1/27/11)
STRYKER CORP: Will 'Let Go About 1,000 Of Its Workers'
- "A year from now, the federal government will start collecting a new tax on medical devices from tongue depressors to imaging machines, thanks to the sweeping health-care overhaul that Democrats enacted in the spring of 2010. People in the industry say it's already having an effect. In November, citing the new tax, Stryker Corp. (SYK), whose products include artificial hips and knees, announced that it would let go about 1,000 of its workers." ("Tongue-Depressor Tax Will Harm Jobs, Innovation: Ramesh Ponnuru," Bloomberg, 1/2/12)
- "'There is no doubt that we're already starting to think about actions that offset that additional tax,' CEO Stephen MacMillan said, noting that the tax would add an estimated $150 million cost for the company." ("BlueCross And PACs," Chattanooga Times Free Press, 2/16/12)
COVIDIEN PLC: Will 'Lay Off 200 Workers In The U.S.'
- "Earlier last year, Covidien Plc (COV), maker of surgical instruments, said it would lay off 200 workers in the U.S. and move production to Costa Rica and Mexico. It, too, cited the tax." ("Tongue-Depressor Tax Will Harm Jobs, Innovation: Ramesh Ponnuru," Bloomberg, 1/2/12)
AMERICAN ENTERPRISE GROUP: '110 Employees Will Lose Their Jobs'
- "Leaders at the parent company of American Republic Insurance told employees this afternoon the company will exit the individual major medical insurance business. The move means 110 employees will lose their jobs over the next three years — 40 in Des Moines and 70 in Omaha — and signals the widespread anxiety among insurance companies over the raft of regulation resulting from the health care overhaul bill. 'It's a fairly predictable consequence of the regulation,' said Michael Abbott, the president and CEO of the American Enterprise Group, American Republic's parent company…" ("American Enterprise To Exit Portion Of Individual Health Insurance Business," Des Moines Register, 10/20/11)
ZIMMER HOLDINGS: Will 'Cut About 50' Positions
- "Zimmer Holdings (NYSE:ZMH) announced layoffs at its Warsaw, Ind., headquarters, pointing to the expected burden of the medical device tax as partly responsible for some of the losses. The orthopedics device maker plans to offset the entire burden posed by the impending 2.3% device levy in 2013 through cost-cutting efforts, part of which include layoffs… The orthopedics device maker plans to outsource its 120-employee transportation management team to a hub in Memphis, Tenn., beginning in the 3rd quarter, and will also cut about 50 other positions globally before the end of the year, Clark said." ("Zimmer Axes Jobs To Cut Costs Ahead Of Med-Tech Tax," Mass Device, 3/6/12)
Small Businesses: 'A Death Sentence For Many Small Salons'
STAR TRIBUNE: "The recession and a still-sluggish economy have pulled many businesses under. Indoor tanning salons say they've been dealt an additional blow, courtesy of the federal government... The group blames the additional burden of a 10 percent tax placed on salons starting July 1, 2010, as part of the health care reform law. 'Whether or not you think people should be sun-tanning, the government is picking winners and losers by using the tax code to punish businesses,' said John Overstreet, executive director of the Indoor Tanning Association. 'This is not the way to write tax policy. It's unfair, and it shouldn't be done.'" ("Indoor Tanning Operators Say They're Getting Burned By Tax," Star Tribune, 12/16/11)
"Many tanning experts believe the tax could cut nearly 9,000 jobs as well." ("Indoor Tanning Salons Will Help Pay For Health Care Under New Bill," WBTW-CBS [SC], 3/28/10)
"The owners of Wisconsin tanning salons say they're getting burned by a new tax in the federal health reform law. Starting July 1st, those who provide artificial indoor tans will be taxed 10 percent of their costs." ("Wisconsin Tanning Salons Getting Burned By New HCR Law," WTAQ Radio, 3/26/10)
- "Dale Suslick of Madison, who owns 9 shops, calls it a death sentence for many small salons. He said some were just barely making it, and they'll now try to either sell or close their businesses." ("Wisconsin Tanning Salons Getting Burned By New HCR Law," WTAQ Radio, 3/26/10)
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