Tag Archives: Benefits

Boehner: Congress Should Heed Employers’ Warnings Rather Than Interrogating Them About Effects of Job-Killing Health Care Law

House Republican Leader John Boehner (R-OH) issued the following statement on upcoming hearings called by Rep. Henry Waxman (D-CA), chairman of the Energy & Commerce Committee, to intimidate employers who are warning that the job-killing new health care law will increase their costs and hamper job creation:

“Throughout the past year, American employers have warned that the health care policies being promoted by President Obama and his Democratic allies in Washington will hurt our economy and make it more difficult to create jobs.  Yet now that those policies have become law over the objections of the American people, Congressional Democrats such as Chairman Waxman profess shock and surprise at hearing American employers announce that they will have no choice but to make painful changes to comply with it.  The new health care law is a job-killer, and we are already seeing the negative impact it is having on our economy.

“Just as important, the law’s new cost increases and mandates are forcing employers to consider dropping health coverage for their employees and retirees altogether, which would force even more Americans into the unsustainable Medicare and Medicaid systems.  Instead of interrogating America’s private sector job creators, Congress should be listening to them, heeding their warnings about the effects of this deeply flawed new law, and replacing it with reforms that will help them get back to creating jobs.”

In a memo sent to House Republicans last Thursday, Leader Boehner urged Republicans to focus on the economy as they discuss the new health care law with their constituents during the congressional district work period.  In the memo, entitled “Where are the Jobs?  Not in President Obama’s Health Care Law,” Boehner echoed more than 100 economists who have warned that President Obama’s massive new law will hurt the economy and make job creation more difficult at a time of nearly double-digit unemployment.

NOTE: In the days after President Obama signed the new health care law, America’s employers began warning shareholders and employees about higher health care costs that would result.  AT&T announced it would bear $1 billion in higher costs, Deere & Co., $150 million; Caterpillar, $100 million; AK Steel, $31 million; 3M, $90 million; and Valero Energy, up to $20 million. Similar announcements are expected in the coming days and weeks.

via Boehner: Congress Should Heed Employers’ Warnings Rather Than Interrogating Them About Effects of Job-Killing Health Care Law | Republican Leader John Boehner.

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Filed under Barack Obama, Big Government, Capitalism, Congress, Conservatives, Constitution, Economics, Government Spending, Healthcare Reform, Jobs, National Debt, Organized Labor, Progressives, Socialism, Sovereign Debt, Taxation, United States of America, USA

Controller: Labor-Backed Pension ‘Reform’ Would Cost City $13.2M Per Year – San Francisco News – The Snitch

​We’ve reported a bit on Supervisor Sean Elsbernd’s attempts to save the city a modest bundle via pension reform, and the SEIU’s attempts to amend the plan via Supervisor Eric Mar.

While Mar claimed his amendments wouldn’t cost the city any additional money, Elsbernd disagreed — and, now the city’s number-crunchers can quantify why. Peg Stevenson, director of the city’s performance group, has calculated that the labor-crafted Mar amendments would cost the city $13.2 million annually. Since the point of “pension reform” is to save money — and not spend more — this is a somewhat incredible development.

Here’s why the Mar amendment would cost the city millions:

With the exception of a few minuscule unions, the SEIU is the only city union that doesn’t pay into its own pension plan; the city has in the past agreed to do it for them in lieu of raises. The SEIU — via Mar — is now offering to make a trade: The union members will pay the 7.5 percent pension costs in exchange for a 7 percent pay raise. This, Mar said earlier this month during a Rules Committee meeting, was a cost-neutral exchange.

Stevenson’s calculations, however, reveal it’s not nearly so simple. The dollars San Francisco pays into SEIU workers’ pensions are untaxed; 100 percent of those payments go just where they should. Yet money paid out in salary costs is different: The city would now be on the hook for drains such as Social Security, Unemployment, and Long-Term Disability.

When you do the math, Stevenson says, the city must spend $1.16 for every dollar it pays toward workers’ salaries. Ay, there’s the rub.

It also stands to reason that if you give city workers raises, they’ll eventually be eligible for higher pensions. Stevenson said she isn’t yet able to calculate those costs — but doesn’t think it’ll change her numbers “by any order of magnitude.”

The full Board of Supervisors debates both Elsbernd’s original plan and Mar’s “labor-friendly” amendments on the 23rd. It will be interesting to see how that discussion pans out — and if the concept of pension “reform” costing the city millions in even the short-term is as ludicrous to our elected officials as it is to the rest of the civilized world.

via Controller: Labor-Backed Pension ‘Reform’ Would Cost City $13.2M Per Year – San Francisco News – The Snitch.

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Filed under Big Government, Economics, Government Spending, Organized Labor, SEIU