Businesses get Obamacare socialism

From an AP story about the reaction of business interest regarding Obamacare:

American industrial companies that are struggling to compete globally against companies with much lower labor costs are particularly likely to eventually drop retiree coverage, said Gene Imhoff, an accounting professor at the University of Michigan.

"Anything that they can use to justify pushing something away from the employees, pushing it back on the employees or the government, they're going to do it," Imhoff said. "I'm not sure you can really blame them for trying to do this."

This is the problem of income tax not progressive, there is an incentive to have middle income taxpayers cover the labor costs that wealthy businesses normally expensed themselves. It is a gain to the large corporation because the effective tax rate for upper echelon is low enough compared to the labor expenses of lower echelon. Hence the Dead Zone effect with fewer numbers of wage settings.

There are more wage setting that are disadvantaged by the complex tax structure of Obamacare so the labor markets simplify, meaning fewer job choices.