Moore falsely suggested all small business would be taxed under health care reform
Appearing on Fox News, Wall Street Journal senior economics writer Stephen Moore again falsely suggested that health care reform legislation would "impose an 8 percent payroll tax on" all small businesses, which would "increase the cost of hiring a new worker." In fact, the "8-percent payroll tax" in the House health care reform bill is a penalty on certain employers who do not provide health care coverage to their employees; businesses that provide health care coverage would be exempt from the tax.
Moore again suggests all small businesses would face 8-percent payroll tax
From the September 3 edition of Fox News' On the Record with Greta Van Susteren:
MOORE: By the way, Martha, I can't resist saying the other thing that makes people so angry that are small businessmen and women like this woman, Catherine, is that they are the -- what we call in Washington the "pay for." They have to pay for everything that Barack Obama wants to do. So if you look at who's going to finance this huge trillion-dollar health care bill, it's going to be financed largely through payroll taxes imposed on small businesses.
Now, look, Martha, I've run a small business. I ran a small business with 15 employees once. You know, you -- it's -- it's hard to imagine, if you haven't done it, if you haven't met a payroll, if you don't know what it's like to -- to lose sleep on whether you can keep your business open at night because you don't know whether the next check is coming in -- you're going to impose an 8-percent payroll tax on those small businesses? They're going to have to lay off workers if you do that.
[...]
MOORE: Well, especially because, Martha -- Martha, tomorrow, we got the unemployment numbers that are coming out, and we're expecting a little -- you know, another 250,000 jobs lost. So why in the world would you want to increase the cost of hiring a new worker when we're trying to put 15 million new workers -- unemployed workers back to work?
Moore previously stated: "Every time a business hires a new worker, they'd have to pay an 8-percent tax." Moore previously said: "People forget that one of the major ways that this health care bill is paid for is on the backs of small businesses, and there's an employment tax. Every time a business hires a new worker, they'd have to pay an 8 percent tax under this bill -- my goodness." [On the Record, 8/12/09]
Businesses that provide health coverage would not pay 8-percent penalty
8-percent tax is actually a penalty on certain employers who do not provide health care coverage to their employees. The House tri-committee bill states that the tax applies only to employers who elect not to provide sufficient health care coverage as described in the bill:
''(c) EMPLOYERS ELECTING TO NOT PROVIDE HEALTH BENEFITS. -
'(1) IN GENERAL. -- In addition to other taxes, there is hereby imposed on every nonelecting employer an excise tax, with respect to having individuals in his employ, equal to 8 percent of the wages (as defined in section 3121(a)) paid by him with respect to employment (as defined in section 3121(b)). [America's Affordable Health Choices Act]
Not all small businesses that do not offer health care coverage would face 8-percent penalty. The House bill states that businesses with payrolls of less than $250,000 would not pay a penalty for failing to provide health care coverage to their employees. Of businesses that do not provide health care and whose payroll exceeds $250,000, the penalty varies depending on the size of the company's payroll. The bill establishes an excise tax of 2 percent of payroll for businesses with combined payroll between $250,000 and $300,000; a 4-percent penalty for businesses with $300,000 to $350,000 in payroll; and a 6-percent penalty for businesses with $350,000 to $400,000 in payroll. The full 8-percent tax applies only to businesses with payrolls that exceed $400,000. [America's Affordable Health Choices Act]
Moore has repeatedly advanced falsehoods and misinformation about Democrats' economic policies
Moore falsely claimed President Obama "won't ... cut taxes" after Obama already had done so. Moore said of the Obama administration's plans for dealing with the economic situation: "The one thing this administration won't do is cut taxes." In fact, the recovery act included $288 billion in tax relief. [On the Record, 7/7/09]
Moore falsely accused Frank of "involvement in giving a blank check to Fannie and Freddie." Moore falsely accused Rep. Barney Frank (D-MA) of "involvement in giving a blank check to Fannie and Freddie," echoing the oft-repeated myth that Frank fought efforts to strengthen congressional oversight over Fannie Mae and Freddie Mac. [CNBC's Street Signs, 5/13/09]
Moore falsely claimed Obama "never used the word 'entrepreneur' " in speech. Moore falsely claimed that Obama "never used the word 'entrepreneur' " in an April 14 speech on the economy. In fact, Obama said in the speech: "If businesses and entrepreneurs know today that we are closing this carbon pollution loophole, they'll start investing in clean energy now." [CNBC's The Kudlow Report, 4/14/09]
Moore advanced McCaughey health care falsehood. Moore echoed a falsehood advanced by former New York Lt. Gov. Betsy McCaughey in claiming that the economic recovery bill includes a provision that would "hav[e] the government essentially dictate treatments." [Fox News' America's Newsroom, 2/10/09]
Transcript
From the September 3 edition of Fox News' On the Record with Greta Van Susteren:
MOORE: By the way, Martha, I can't resist saying the other thing that makes people so angry that are small businessmen and women like this woman, Catherine, is that they are the -- what we call in Washington the "pay for." They have to pay for everything that Barack Obama wants to do. So if you look at who's going to finance this huge trillion-dollar health care bill, it's going to be financed largely through payroll taxes imposed on small businesses.
Now, look, Martha, I've run a small business. I ran a small business with 15 employees once. You know, you -- it's -- it's hard to imagine, if you haven't done it, if you haven't met a payroll, if you don't know what it's like to -- to lose sleep on whether you can keep your business open at night because you don't know whether the next check is coming in -- you're going to impose an 8 percent payroll tax on those small businesses? They're going to have to lay off workers if you do that.
MARTHA MacCALLUM (guest host): Well, that's exactly --
MOORE: If you make labor more expensive --
MacCALLUM: -- what they'll do.
MOORE: -- they're going to lay them off.
MacCALLUM: Yeah, and --
MOORE: And by the way --
MacCALLUM: -- that's -- that, you know, makes progress go in the opposite direction in terms of --
MOORE: Exactly.
MacCALLUM: -- producing jobs in this country.
MOORE: Well, especially because, Martha -- Martha, tomorrow, we got the unemployment numbers that are coming out, and we're expecting a little -- you know, another 250,000 jobs lost. So why in the world would you want to increase the cost of hiring a new worker when we're trying to put 15 million new workers -- unemployed workers back to work?
MacCALLUM: Well, you know, these are very good issues and they need to be focused on as, you know, they come back from the break and they're going to sit down, supposedly, and try to rework some of this bill.
Why doesn't that same sentiment apply to businesses? If they can't afford the 8% (or 4%, 6%), then shouldn't they just work harder? Steal customers from competitors, advertise more, run promotions? Why doesn't the same pie-in-the-sky reasoning apply there?
People want consumers to spend, first things first, they need a raise, they get a raise, they'll spend the money. The middle class hasn't gotten any kind of a raise in more than 50 years. Thats conservatism for ya. The guy that starts the business gets all the money, the guy who makes it run, and keeps it running, gets nothing. Thats justice Amerikan style.
Let's play business owner:
Cost of labor, even in food service where labor is a big component, is about 30% of costs. 8% of 30% is about 2.4% increase in price. A Grande Latte at Starbucks will zoom from $3.25 to $3.33 - 8 cents.
That's my view of it too, Brabantio. There was only one time in my life that taxes were really an outrage to me. I was in high school, working at a gas station, making 4 bucks and something an hour. It was my first non-cash job, and I was furious at the bite taken out of my first paycheck.
But I didn't stay mad very long. I worked harder, made more money, and taxes became less of a problem. My rate went up, I actually paid more in taxes, but it always worked out that as I got better jobs and worked harder, I had more money to keep after taxes.
Whenever I hear people whining about taxes, I assume they're lazy or not very capable.
BTW, right wing buzzword of the day on health care seems to be "Washington-centric". I had the tube on this morning, flipping through news channels, and heard it 3 times in about 15 minutes.
The definition seems to be this; Democratically elected leader, supported by a majority of people,implies that he may push through legislation that was a major part of his platform, regardless of the angry minority's attempts to misinform the public and create obstacles to enacting the will of the people.
It is a mandate to OFFER health insurance to your employees if you are over a certain size.
Apparently you do not like it. That is fine.
Stephen Moore is a liar when he says all small businesses will be taxed under this plan.
That is a lie.
I'd rather ask what the small business owners and others are going to do with the huge mountain of free money they'll have when their exorbitant bills are slashed. But you're the grouch.
Since your post is incomprehensible in light of that fact, this must be the first time you heard it. Which means the media is doing its job.
- Only a depraved individual would say we shouldn't treat people who are sick.
- I don't think anyone of us wants to go down the path of the government asking individuals for their papers without probably cause.
- A lot of illegal immigrants pay taxes.
Employers are not responsible for your health insurance...you are.
Govt should ask for legal documentation if the individual wishes to receive healthcare.
I'm sure some illegals do pay taxes, but unless you can state they are here legally, the point is moot.
- The government should ask for documentation only if it has probable cause that a crime has been committed.
-The point is not moot. A lot of them pay taxes and they get nothing in return. And the government counts and depends on the taxes illegal immigrants are putting into the Social Security system to calculate its solvency.
Randy
The funny thing is that if they go overseas they're going to countries that have universal health care with tax structures in place to pay for it. Those countries fund that coverage and their businesses are still able to operate at lower costs than our businesses pay for health care coverage.
Just think, if the next Republican majority in the Fed Govt is driven by Club for Growth (Moore's organization) and their desire to get govt completely out of business taxes and regulations, we'll see 10x more of the bank & mortgage collapses that we all just got hammered by.
The purpose of government is to serve the rich. If the rich want to be properly served, they must vote for democrats. Otherwise they get economic meltdown and huge health and energy bills.
First off, he's in the pocket of billionaires as their mouthpiece and idea guy. He acts like a mensche but is a weasel.
Moore is the guy who championed Bush tax cuts that eviscerated 70 million small businesses, and benefitted perhaps 500,000 multi-millionaires.
Moore is the guy who thinks that lazy trust fund babies like Paris Hilton should be taxed less than inventors and entrepreneurs who actually create jobs and add value to the nation.
Moore is the guy who doesn't admit that we will have more job creation and more innovation with a Single Payer plan because startups like mine will more easily be able to attract experienced people from big companies who need health care for their families.
these blonds on fox news are like robots... they just sit there, look pretty and cute and repeat (or agree) what republican talking points that are said in their ear piece.