Hey all you youngsters out there, get ready to take one for the team!
“… House Democrats have deliberately not indexed two main tax features of their plan: the $500,000 threshold for the 5.4-percentage-point income tax surcharge; and the payroll level at which small businesses must pay a new 8% tax penalty for not offering health insurance.“
Holy shit, if we get inflation, this is going to crush the very people it was designed to help by hammering the small businesses that most low-income workers work for.
Think of it this way: if we get inflation, wages will have to go up for workers to just stay even. But because the thresholds aren’t indexed, it means their small business employer, who will be exempt when the bill passes, will be that much closer to hitting the mandatory level for providing health insurance. It then becomes a Catch-22: give people a needed raise plus pay for health insurance (can’t afford that when inflation is running rampant), or fire somebody (or a lot of people).
It doesn’t take a rocket scientist to figure that one out. If you can’t afford the employee, you fire them.
Nice job Nancy!