[Congressional Record Volume 159, Number 65 (Thursday, May 9, 2013)]
[Senate]
[Pages S3287-S3288]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
HEALTH CARE
Mr. COATS. Mr. President, back home in Indiana last week, I heard
from many Hoosiers who are concerned about the impact of ObamaCare. I
went back to listen to the people, and almost invariably, no matter
what subject was on the table, the impact of ObamaCare was what was
brought up first and discussed the most.
I particularly focused on those businesses which are in a position to
expand and hire but are simply not doing so, and the question is, Why?
The answer was that they are deeply concerned about the implementation
of the so-called Affordable Care Act, basically saying that it is an
unaffordable care act.
They also said they were confused about what it means and what it
doesn't mean. These regulations are continuing to come out, but many of
them are delayed, so there is a huge cloud of uncertainty over their
future. As a consequence, Hoosier employers have to make decisions
about hiring or not hiring, about expanding or not expanding, about
buying new equipment or not buying new equipment, about building new
factories or not building new factories.
In Indiana, we have positioned ourselves to be a very business-
friendly State. In fact, a major survey came out a couple of days ago
that said Indiana is among the top five States in the Nation in terms
of being business-friendly. As a result, we have a lot of inquiries
from businesses in other States, and essentially what they are saying
is that they would like to come to our State.
We have a lot of people in our State who are operating businesses and
would like to hire more employees, but they are frozen because of this
health care bill, and all of the regulations, penalties, taxes, and
uncertainty that surround what is going to play out is leaving them in
limbo. We are treading water. We can't make decisions. The word of the
year is ``uncertainty''--uncertainty about what Washington is going to
do, uncertainty about the impact of what Washington has already decided
to do. The No. 1 topic that beats all the rest is the impact of the
Affordable Care Act--the ObamaCare act--which is now starting to impact
various businesses across the State.
These concerns have been expressed both by business owners and by
employees working in a wide range of occupations. Their concern has
been confirmed by data released by the Labor Department last week. The
recent report revealed retailers appear to be cutting working hours at
a rate unheard of over the last 30 years.
We saw some positive news come out of the jobs report last week.
Unemployment is coming down slightly. Of course, it doesn't begin to
address the issue or consider those who have literally dropped out of
the workplace or have literally given up trying to find a job because
they simply aren't there. But now we face another problem. More and
more Americans are being pushed into part-time work, which isn't enough
to provide for a family. Last month, nearly 280,000 Americans
involuntarily entered part-time employment. Weekly take-home pay
continues to decline and, of course, the number of hours employees are
working continues to shrink.
Why is this change occurring? Investor's Business Daily reported that
``all evidence points to the coming launch of ObamaCare as the reason
for this decline in the average retail workweek.''
Beginning next year, as we know, job creators will face fines of
$2,000 and, in some instances, up to $3,000 for every full-time worker
who receives subsidized coverage in the exchanges created by ObamaCare
if qualifying coverage isn't available in the employee's workplace, or
if that employer is no longer able to afford the cost of government-
mandated health plans. These are small businesses. We are not talking
about Fortune 500 companies. We are not talking about those firms that
can hire a back room full of lawyers and accountants to figure out how
this health care plan is going to impact them and what it is going to
cost. We are talking about the service industry, we are talking about
the retail shops--those that employ anywhere from 30 to 40 to 60 to 70
to 90 or whatever. A lot of them are trying to stay under the 50
level--the exclusion for small businesses--50 and under. So a lot of
them are stuck at 45, 48, and they are not going to hire to go above
that and they are looking for ways to move employees to part-time
employment so they are not burdened with these fines.
Many Hoosier employers have told me they would like to expand and
hire more full-time workers, but they simply cannot afford to do so
given the fines, taxes, and regulations that will hit when the
ObamaCare act is implemented starting in 2014.
The U.S. Chamber of Commerce has said 71 percent of small businesses
say
[[Page S3288]]
this health care plan makes it harder to hire more employees. I heard
from a small business owner in Indiana who runs an employment
management service. He told me small businesses such as his have
decided to use a combination of cuts to keep many of their employees
under 30 hours a week to avoid penalties, while pushing full-time
workers well over 45 hours a week. Well, that is fine for the full-time
workers who are getting some overtime pay, but it is denying job
opportunities for new hires because employers are put in this position
by the mandates of the health care act. It is not just limited to the
private sector. I recently heard from a State representative in Indiana
who is concerned about how this law is going to affect school districts
in his area. He says some schools are being forced to move nonteacher
personnel to part-time status, affecting food service providers,
teacher's aides, bus drivers, substitute teachers, maintenance
personnel, as well as nonteacher coaches. People from all walks of life
have a dark cloud of uncertainty over their future plans to run a
business, to hire employees, and to do what is necessary to expand
their business, and that is so desperately needed, given we are now
entering the fifth year of underemployment in this country. So that
incentive to employ part-time workers means fewer hours, lower wages,
less economic growth, less production, and it means middle-class
Americans will continue to pay the price of Washington's ineptness.
One of our colleagues here said it best about the implementation of
the health care law: ``I just see a huge train wreck coming down.'' I
think it is becoming clear that we all see a huge train wreck coming
down. If both sides of the aisle here understand this is a train wreck,
then let's do something about it now before it hits. Let's stop the
train from crashing before its full impact on the economy takes effect.
Americans want health care reform that is an improvement but not a
burden. We need to replace ObamaCare with commonsense health care
reforms that will lower costs without penalizing American workers and
job creators. If we don't act--if we don't stop this train wreck from
happening--we will continue to see a struggling economy with anemic
growth and the American people will continue to pay the high price.
I yield the floor.
The PRESIDING OFFICER. The Senator from Arizona.
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