Uncertainty Keeping Our Economy Stuck in Neutral

Public Notice: Washington’s habit of waiting until the last minute to address major issues and this administration’s record of circumventing the legislative process with politically-motivated regulations have resulted in an unpredictable economic climate that has forced job creators to the sidelines. Without a forward-looking, long-term economic agenda that empowers entrepreneurs and job creators, the economy will remain stuck in neutral.

• Our leaders continue to delay tough decisions such as how to strengthen entitlements, reduce our deficit and develop a pro-growth tax code. Businesses are stuck on the sidelines, unable to plan for the future because Washington keeps changing the rules of the game.
• This penchant for short-term fixes to long-term challenges might get our leaders through their next election, but it only exacerbates our problems, forcing future generations to clean up the mess.
• It all comes down to a question of uncertainty. Washington insists on making decisions at the last minute. Our already fragile recovery can’t afford lawmakers’ constant political posturing.
• Our mounting debt hurts our economy’s potential for a strong recovery. With the debt surpassing 100% of the economy, it is now at the point where it is adversely affecting economic growth – and that is something Americans simply cannot afford.
• And policies coming out of Washington make it far too difficult for businesses and the American people to plan ahead.
• Unsure of what taxes, spending, and regulation will look like, businesses are unwilling to expand, invest, and hire.

Obamacare was rammed through Congress at the 11th hour and now we can plainly see the fallout with the many delays and missed deadlines. It only makes sense to delay full implementation given these problems and the impact its already having on the economy, rather than arbitrarily picking certain provisions to delay and other to implement on time.

• The total increase in part-time employment was more than double the number of net new jobs added in June.
• It’s time for Washington to stop holding back a recovery. Stop the posturing and give Americans and businesses a chance to succeed. Hardworking taxpayers will be the foundation for economic growth, not government.

Supporting Articles:
The Hill: “ObamaCare Delay Stokes Concerns About Implementation.” “The decision to delay the healthcare law’s employer mandate raised immediate questions about whether the rest of the law can be implemented on time.”(Sam Baker and Mike Lillis, ““ObamaCare Delay Stokes Concerns About Implementation,” The Hill, 7/4/13)

CNN: “For Fatburger And Others, Obamacare Delay Came Too Late.”  “Because a 30-hour work week counts as full-time under Obamacare, Fatburger fast-food restaurants had started cutting worker hours below that threshold, CEO Andy Wiederhorn said. Some Fatburger owners even began ‘job sharing’ with other businesses, teaming up to share a higher number of employees all working fewer hours. Someone could work 25 hours at one Fatburger, 25 at another one with a different franchise owner, and still not be a full-time worker under Obamacare rules.”  (Jose Pagliery, “For Fatburger And Others, Obamacare Delay Came Too Late,” CNN, 7/8/13)

Fatburger CEO Andy Wiederhorn: “All It's Doing Is Causing Confusion, Anxiety And The Workers Are Paying The Price. … Now, The Mandate's A Moving Target. It's Very, Very Challenging.” (Jose Pagliery, “For Fatburger And Others, Obamacare Delay Came Too Late,” CNN, 7/8/13)

Decision To Delay Employer Mandate “Doesn’t Change Much” For Many Companies: “Many companies at the International Franchise Expo in New York City last month acknowledged they've been adopting that slash-and-share method, cutting hours and splitting workers. For them, the White House decision to delay implementation doesn't change much: Small business owners who undo those changes will simply have to redo them next year.” (Jose Pagliery, “For Fatburger And Others, Obamacare Delay Came Too Late,” CNN, 7/8/13)

Business Owners Hope Delay Is A Step Toward Elimination: “Many small business owners hope the delay is merely a step toward eliminating the employer mandate entirely. Mike Johnson is another Buffalo's Cafe franchisee who owns four restaurants near Atlanta, Ga. … Those covered under his insurance plan will jump from 12 employees to perhaps 70. Even if some of them turn down the offer, he projects his yearly health insurance premiums will go from $60,000 to more than $200,000. That would cut his profits in half, he said.” (Jose Pagliery, “For Fatburger And Others, Obamacare Delay Came Too Late,” CNN, 7/8/13)

Buffalo’s Café Franchisee Mike Johnson: "I've Been Worried Nearly Sick About It. … The Employer Mandate Never Made Any Sense To Anybody, Especially To Struggling Small Businesses.” (Jose Pagliery, “For Fatburger And Others, Obamacare Delay Came Too Late,” CNN, 7/8/13)

NUMBER OF PART-TIME WORKERS JUMP AS IMPLEMENTATION MOVES AHEADObamacare Creating Incentives To Hire More Part-Time Workers: “[Obamacare] requires employers with more than 50 workers to provide health insurance to all employees or pay a $2,000 penalty per worker. The law also defines a full-time job as 30 hours a week. All of this gives businesses that operate on thin margins—and that's most businesses—an incentive to hire more part-time workers.” (Editorial, “Part-Time America,” The Wall Street Journal, 7/6/13)

Zero Hedge: “ObamaCare Strikes: Part-Time Jobs Surge To All Time High; Full-Time Jobs Plunge By 240,000.” “In June, the household survey reported that part-time jobs soared by 360,000 to 28,059,000 - an all time record high. Full time jobs? Down 240,000.  And looking back at the entire year, so far in 2013, just 130K Full-Time Jobs have been added, offset by a whopping 557K Part-Time jobs.” (“ObamaCare Strikes: Part-Time Jobs Surge To All Time High; Full-Time Jobs Plunge By 240,000,” Zero Hedge, 7/6/13)

Part-Time Employment Rose By More Than Double The Number Of New Jobs In June: “Also disappointing is the big jump in the number of Americans who want to work full time but could only find part-time work. That number leapt to 8.23 million, a 322,000 one-month increase. Total part-time employment rose by 432,000, more than double the total number of net new jobs.” (Editorial, “Part-Time America,” The Wall Street Journal, 7/6/13)Part-Time Employment Comes With Its Own Problems: “Economists at Credit Suisse credit much of the U-6 rise to a ‘large’ 322,000 gain in those who found themselves working part time for economic reasons. While part-time employment is better than no employment, it comes with its own problems. ‘The issue of part-time is important because those jobs don't create as much income and the workers are still considered employed,’ noted Joel Naroff, of Naroff Economic Advisors.” (Michael Derby, “U-6 Surges, Suggesting Underlying Labor Market Problems,” The Wall Street Journal, 7/5/13)

Hospitality Jobs Up, But Hours Are Down: “Retail (37,000) and leisure and hospitality (75,000) businesses accounted for more than half of the new jobs in June. And it's revealing that the average hours worked in retail have fallen to 31.4 from 31.6 hours a week over the past year, and the average hospitality job now is still 26.1 hours a week.” (Editorial, “Part-Time America,” The Wall Street Journal, 7/6/13)

HHS NO LONGER ATTEMPTING TO VERIFY ELIGIBILITY FOR INSURANCE SUBSIDIES
HHS No Longer Attempting To Verify Eligibility For Insurance Subsidies.“HHS now says it will no longer attempt to verify individual eligibility for insurance subsidies and instead will rely on self-reporting, with minimal efforts to verify if the information consumers provide is accurate.” (Editorial, “Obamacare’s ‘Liar’ Subsidies,” The Wall Street Journal, 7/7/13)

The Hill: “Experts say ObamaCare delay may prompt false tax reports”(Sam Baker, “Experts say ObamaCare delay may prompt false tax reports,” The Hill, 7/8/13)

“The Exchanges Will Take Applicants At Their Word.” “The administration said it would not require state insurance exchanges to verify the income statements of people seeking to buy insurance through the exchanges. The exchanges will take applicants at their word.” (Sam Baker, “Experts say ObamaCare delay may prompt false tax reports,” The Hill, 7/8/13)

No Verification Means A System Ripe For Fraud And Huge Increases In Spending:
Could Mean “Millions Of People Getting Subsidies Who Don’t Legally Qualify,” Resulting in “Huge Increases In ObamaCare Spending.” “HHS promises to develop ‘a more robust verification process,’ some day, but the result starting in October may be millions of people getting subsidies who don't legally qualify. This would mean huge increases in ObamaCare spending.” (Editorial, “Obamacare’s ‘Liar’ Subsidies,” The Wall Street Journal, 7/7/13)

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