“The creation of new jobs may be further hindered by businesses’ continued lack of confidence in the recovery’s sustainability and by remaining limitations on access to credit. Businesses may also be unsure and concerned about how they will be affected by the implementation of recently enacted financial and health care legislation and by possible future changes in tax and other federal policies. Those uncertainties about future policies may be restraining hiring at some firms, but the magnitude of any such restraint is difficult to determine.” The CBO Budget and Economic Outlook Fiscal Years 2011 through 2021, page 42
The Ways and Means Committee heard testimony today from employers who expressed deep concern about the unknown and hidden costs in the Democrats’ health care bill – and how the uncertainty of those new costs impacts their ability to invest, grow and hire new workers. Their testimony exemplifies the concern raised by CBO and others about the harmful impact of the Democrats’ health care law on jobs.
Scott Womack, Owner Womack Restaurants
“The recent flood of regulations and looming uncertainty about what Washington D.C. will do next is only compounding these challenges … Additionally, we will be forced to cease new restaurant development and may forfeit the development agreement we invested in. That agreement cost $360,000. This future development would amount to $22,000,000 in construction and development spending, and 260 full time restaurant jobs.”
Joe Olivo, President and Co-Owner Perfect Printing
“While those issues that I have mentioned are the known items that will affect my ability to grow my business, it is the uncertainty that causes concern as well. Questions such as:
- What portions of the legislation are applicable to my company?
- What are the exact ramifications if I go over 50 employees?
- What taxes, fines and penalties will I be exposed to? How much will they be?
You should understand that when I make the decision to invest in my business and try to grow it further, I cannot afford to be wrong in my calculations.”