Printer Friendly

JOB LOSS WILL OCCUR IF HEALTH PLAN FORCED ON EMPLOYERS, GALLUP SURVEY CONFIRMS

 WASHINGTON, Oct. 6 /PRNewswire/ -- Small-business job destruction under a government-mandated health care system will be unavoidable, the nation's largest small-business advocate, the National Federation of Independent Business (NFIB), charged today.
 Refuting White House claims that the president's health reform plan may not cost millions of workers their jobs, the organization revealed the final results of a Gallup Organization survey of more than 1,000 small-business owners.
 "If the administration's plan is good for small business and their employees, then why offer subsidies?" NFIB Vice President John Motley asked. "Clearly, the White House is expecting this plan to inflict some economic damage."
 Payroll cost increases would result in job losses, the Gallup survey found. Two-fifths of those responding said they would lay off some employees or not fill existing vacancies if payroll costs increased 12 percent, 38 percent would act accordingly if costs climbed 8 percent, and 31 percent said they would cut employment when faced with 3.5 percent hikes.
 Conducted during the week President Clinton unveiled his plan, the survey was based on a sample drawn from NFIB's 600,000-plus membership rolls.
 Opposition to a government-required health program was overwhelming -- 84 percent were against a plan which would force them to pay 80 percent of the premiums for full-time employee coverage.
 Subsidies found no favor either. Among those opposing the plan, nearly half -- 46 percent -- said the idea of a subsidy would strengthen their opposition to an employer requirement.
 "Americans have a long history of being able to deal with the facts," Motley said. "We urge the administration to present a clear picture of its health plan and not obscure any information which could cause people to lose faith in the future. This issue is much too important to business owners, consumers and all working people to be camouflaged."
 Not only could jobs be lost if a government-imposed health plan is enacted, but the economy could face inflation and a decline in overall business activity. By even greater margins, small-business owners said they would raise prices to offset higher payroll burdens. Nearly half -- 48 percent -- would hike prices if faced with a 3.5 percent increase.
 Other ways entrepreneurs said they would respond were by cutting earnings or profits, reducing wages and salaries, trimming the number of hours for workers or reducing other benefits.
 Motley also cited a number of other surveys which support NFIB's job loss concerns under a government-decreed health system, notably one of 1,000 economists by the University of New Hampshire which found that 80 percent expected unemployment among low wage earners to rise, and 59 percent foresaw similar conditions for all workers.
 NFIB, while expressing staunch opposition to the employer mandate, supports much of President Clinton's plan, including malpractice and insurance reform, tax deduction caps for excess benefits, full deductibility for self-employed business owners who now are allowed only a 25 percent, temporary tax break, establishment of regional purchasing cooperatives and efforts to encourage preventive medical care.
 -0- 10/6/93
 /NOTE TO EDITORS: Survey results are available upon request./
 /CONTACT: Terry Hill or Angela Jones of the National Federation of Independent Business, 202-554-9000/


CO: National Federation of Independent Business ST: District of Columbia IN: HEA SU:

MH-DC -- DC022 -- 9373 10/06/93 13:33 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 6, 1993
Words:542
Previous Article:BRITISH AIRWAYS PLACES $25 MILLION ORDER WITH BURNS
Next Article:NAR SAYS APPRAISAL THRESHOLD FOR RESIDENTIAL LOANS SHOULD REMAIN
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters