The penny-per-hour wage tax!


Watch out for the penny per hour wage tax

Before I explain how bad the Legislature’s penny-per-hour tax for family leave policy is, let me first show how over-zealous family leave laws have hurt Europe.

Europe’s aggressive family leave laws are the goal of Oregon liberal lawmakers. Yet, Europe has its problems. According to the Wall Street Journal (6/20/07), unemployment among women in Europe is 50% greater than the U.S. As the liberals keep piling on mandates, regulations, and taxes designed to protect women it has had the opposite effect of making them unemployable to employers. Oregon lawmakers think they can hurt local businesses with good intentions and expect no impact.

Another family leave law paradise is Sweden where one on leave can get up 80% of their salary for an unlimited time period. The Heritage Foundation discovered that “At any given moment, 10% of Sweden’s works are on sick leave and over 3/5ths tell pollsters that they take the leave when they have no health problems“

HB 2575 aims to tax employees a penny-per-hour to fund family and sick leave (into a Family Leave Benefits Insurance Account) for employees tending to their health or health of a family member. Oregon already has more mandates on family leave than the average state, but the politicians want to take it further. Just implementing the program would be an expense in itself. The State of Washington has a pilot program, and administrative costs take up almost 50% of the revenue raised. As more people use the program the costs are expected to rise and require a higher tax.

Politicians forget that it costs real money when employees use the family leave law. It takes money to locate, screen, hire and train a temporary replacement. More mandates, more rules, more expenses only make it harder to hire employees in the Northwest.

Studies show that businesses are doing the right thing when they can. 85% of businesses (20+ employees) offer tuition assistance, 74% paid sick leave, and 45% offer adoption assistance. A NFIB study shows that 60% of small businesses already provide extra paid leave for family emergencies or maternity care.

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  • Homerf12

    More politicians need to be employers to understand how destructive a million small bad laws are. It adds up, it matters.

    • Sybella

      From my side of the fence, I don’t think most of our politicians would make it as employers. They don’t have the intestinal fortitude.

  • DMF

    For a small business hiring four employees, three full time and two part time, open twelve hours per day would be charged a total of $1.65 per week, $6.60 per month, $79.20 per year, doesn’t sound like a lot but add that the the current payroll taxes paid by that same employer of $11,463.32 annually, plus the pay to the employees of $128,116.82 annually equals $139,659.34 per year. Methinks the penny could be the straw that broke the camels back.

  • Helps Me

    I as a single man will be my employable, the problem is I might have to leave the state when the company dose because of new taxes and regulation. What really burns me is in truth it is really coming out of my pocket.

    • DMF

      You are absolutely right. All these things added on to your employer does come out of your pocket one way or another. You would do better and make more if the employer could pay you based on merit, You would probably also have more benefits.

  • CRAWDUDE

    No, I don’t want to pay for people to call into to work for a skiing trip! or because it’s sunny. If your job doesn’t give you sick or vacation time then get a better one. Lots of jobs that fall under PERS and you don’t even have to show up to work that often………and when you’re there you do nothing but complain about working too much, lol!

    • Sybella

      They do call in like that all the time. Sickest bunch of people I’ve ever seen in my life. Thank goodness, there are some good employees out there or we would all throw up our hands and quit. Just unfortunately they are in a minority. Before I was an employer, I was an EMPLOYEE. I thought I was good. As an employer, I discovered I was only so-so. Now I understand what an employee needs to be to be indespensible. I have one out of five. Gets good bonuses too.

      • Captain_Anon

        this is the biggest crock of s*** i’ve ever heard. not all public employees are like that. i know several who are VERY hard working, work unpaid overtime, go in sick, etc just to keep up with thier workload. perhaps you and craw have met a few bad employees. they are also in the private sector. how dare you stereotype all public employees in such a way. that’s like saying because you own a business you’re a greedy eomployee who doesn’t care about those who work for them and that you get away with every abuse you can.

        neither you nor craw have ANY data or evidence to back up your stereotypes on public workers

        • Sybella

          I was referring to employees generally, I was not referring just to public employees.You are right. But out of how many are the several? one in ten, one in twenty, one in five? And I don’t believe public employees are any better than private sector. There are good and not so good in either. Those FEW you are talking about are the type I was referring to in my one in five.

          Your comment abut a greedy employer is a stupid lie. If it wasn’t for my employees, I wouldn’t have a business. Furthermore, they are not abused. Tell me when your employer gave you a $3000.00 bonus. Wish I was abused like that. Get off yur high horse

        • CRAWDUDE

          Yes, strange you should ask 🙂 Of course it’s subjective to the Portland area public employees. As reported in the Oregonian, not that their they are a wealth of honestly reported stories.

          It’s not necessarily the entire group, but the fact that I can’t go a day without reading about a public employee or group of them being caught abusing their positions. Whether it be a perverted teacher, a city inspector who evicts people from their home and then buys that home on the cheap at auction before anyone else can, police and firemen who abuse the diability programs…etc… and the unions back this slime to the hilt. Sorry Capt. but your fellow employees are the ones who give you a bad name, not me.

          http://www.ncjrs.gov
          The Multnomah County (Oregon) Sheriff’s Department Peer Support … that 90 percent of officers abuse their sick time in this manner. … cover posts for officers on sick leave.[5] A stress program can …

          Sick-leave use: Views from both sides
          12/07/2006
          The front-page article about the costs associated with the Multnomah County sheriff’s deputies taking advantage of their sick leave (“Costs soar as more deputies call in sick”) reminds me of the old adage, “You get what you pay for.” As members of…
          – The Oregonian (Articles)

          More on Fire/Police Disability
          06/08/2007
          At the risk of talking about something other than duct tape, here’s a little more detail on the story I wrote today about the fire and police disability issue. Ty Kovatch from Randy’s office sent of the details of his proposed charter change: F…

          Audit blasts sex crimes response
          Report faults nearly entire county system for 16 percent rape ‘solve rate’

          By Nick Budnick / The Portland Tribune
          Tue, Jun 19, 2007
          Updated Jun 19, 2007

          City Auditor Gary Blackmer has dropped a bombshell on the Portland Police Bureau’s sex-crime detectives’ detail as well as the entire …

          The state of Oregon says city of Corvallis officials violated election law by improperly promoting the so-called “cell phone tax” and advocating for it during work time. Voters defeated the measure in a Sept. 17, 2006, general election.

          According to a June 12 letter from the Secretary of State’s Office, five city employees violated the law.

          Young Ore. public employees to pay for old excesses

          SALEM, Ore. (AP) — A Multnomah County judge ruled that the state pension fund can’t retroactively reduce the retirement benefits of retired public employees.

          • DMF

            I love it

          • Captain_Anon

            so what you’ve shown here is that there are a minority who abuse the system. this is not the majority, this is not 20%. this isn’t even 10%. you see public employees, who are scrutinized more than the private sector unless entire pensions are lost, are under the microscope – so of course you’ll read about one or two fairly often who abuse the system. and as i said before, there ARE a few who abuse it. no argument there. there are roughly 300,000 public employees in oregon. if you read 2 articles everyday on one of them abusing the system, that would produce 730 poor examples. that’s .0024%. not too shabby

            but there are also just as many, if not more, in the private sector abusing thier systems. calling in sick. using thier positions for financial gain. people are people and they take thier baggage and weakness where ever they go. as i told sybill up above, stereotyping public employees in a poor light is just like stereotyping private workers, or company owners in a poor light. as sybell stereotyped ALL public employees “They do call in like that all the time. Sickest bunch of people I’ve ever seen in my life.” it was funny she was offended by me because i never said all employers are evil, abuse thier employees etc. i said calling ALL public employees lazy, and abusers of ‘the system’ is like calling all employees slave drivers. it’s just not accurate. to continually paint public employees are lazy and abusers of the system isn’t appropriate. especially when people who have no dealings with them or no idea what they are talking about take up the banner and continue the false stereo types

          • CRAWDUDE

            Good points all! I’ll be a little more precise for now on as far as the public employees are concerned, it isn’t fair to group all the good apples in with a few bad ones. Thanks for calling me on that!

            Their unions are more my target than them, I think I got a little of target lately. Have a great weekend Cpat.

          • CRAWDUDE

            Oops, have a good weekend Capt.

          • captain_anon

            thanks, i would have had a great weekend had it not rained on me while camping :/ anyways, i just think public employees take it on the chin more often than they deserve because of a few bad apples. i’ve seen the lazy ones too, but i know they aren’t ALL like that