When are we gonna stop playing with these demented socialists and start bringing the pain….. ~ Allen West
As Written By Allen B. West:
Wednesday morning, I spoke to a group called Success North Dallas on the topic of “Election 2016 and the Impact on Small Businesses.” This is a very astute network of small business owners, and they understand what’s ailing economic growth in America.
Funny thing, I advocated our moving away from the progressive tax code toward a flat tax, lo and behold, there was a fella who admitted to being a tax accountant who disagreed. His dissension centered on this, as he expressed, a flat tax will have an adverse effect on me, regardless of what it may do for economic growth. This sentiment is exactly what ails our nation — self and special interest over the interest of America.
And little did we all know it would not take long for the Obama administration to once again evidence its socialist leanings, creating more adversity for business owners. See, sadly the wage growth situation under Barack Obama has stagnated, so what should one do? Should Obama admit his fiscal policies are a failure, or do you, in your final seven months, double down?
Obama chose the latter and since he has a pen and a phone, he once again took unilateral action.
As Fox News reports:
As the Obama administration cheered “the worker wins” from a newly announced expansion of overtime pay, the directive drew a fierce backlash Wednesday from Republicans and the business community — amid warnings that the move could backfire and hurt workers in the end.
“These rules are a career killer. With the stroke of a pen, the Labor Department is demoting millions of workers,” David French, a senior vice president for the National Retail Federation, said in a statement Wednesday morning.
Policy changes formally unveiled Wednesday would make more than 4 million U.S. workers newly eligible for overtime pay. They’re intended to counter erosion in overtime protections, which require employers to pay 1 1/2 times a worker’s regular salary for any work past 40 hours a week.
In the fast food and retail industries in particular, many workers have missed out on this because they’re deemed “managers” – they work long hours but are paid little more than the people they supervise.
Under the new rules, first released in draft form last summer, the annual salary threshold at which companies can deny overtime pay will be doubled from $23,660 to nearly $47,500.
That means a fast-food manager making $14 an hour – or roughly $30,000 a year – would now be eligible for overtime for those extra hours.
The White House estimates the rule change will raise pay by $1.2 billion a year over the next decade. In addition, some companies may instead choose to reduce their employees’ hours to avoid paying the extra wages.
“Either way, the worker wins,” said Vice President Joe Biden on a conference call with reporters Tuesday afternoon. He formally announced the rules at an event in Ohio Wednesday afternoon.
First the Obama administration redefined what full-time equivalent work hours are to be — 35 hours –in Obamacare. And now, the Obama administration is redefining overtime pay. This follows the socialist economic theory of “nationalizing production.” Here we have President Obama deciding what private sector employers must pay employees, instead of providing them tax and regulatory policies that enable them to grow and pay good wages themselves.
Here’s what the real result will be: there will be no $1.2B in pay raises over the next year. Businesses who must operate under very thin profit margins will find a way to keep their employment costs down. This means they’ll pass on any new costs to the consumer, or those full-time folks won’t have to worry about overtime because they’ll be …..