Obamacare: Will It Even Ruin Pizza?

Professor Thomas Sowell, of the Hoover Institution at Stanford University

 

This item came across my computer screen earlier this morning, from Steve Burke via Jim Geraghty:

 

Any day now, the Food and Drug Administration (FDA) is expected to rule on Section 4205 of The Patient Protection and Affordable Care Act (i.e., ObamaCare), a one-size-fits-all menu labeling regulation, that requires restaurants, including franchised chains with 20 or more locations, to post calorie and nutritional information for all of their products on in-store menu boards costing locally owned businesses up to $4,000 per year.  For a company like Domino’s, a company that already posts an online calorie calculator, that means in-store menu boards for all of its 34 million pizza combinations.  Additionally, ninety percent of their customers, who get their food delivered, will never step foot inside the store to see the signs.  For some supermarkets it could mean providing calorie information for every combination of cakes and pies (assuming the store has a bakery) as well as every combination that can be put together at a salad bar.

 

The Office of Management and Budget (OMB) ranked this menu labeling regulation as the third most costly rule enacted during FY 2010.

 

The Washington Times wrote an editorial on this last week.

 

It’s an outrage on many levels, of course.  But, at least on one, it’s also a delight:  Some larger or smaller number of marginal pizza operations will probably go out of business.  However, those that survive will simply pass their increased costs on to their customers.  And that’s perfectly fine with me:  Unmarried college kids evidently turned out in large numbers to vote for Barack Obama.  I say, therefore, let their pizza prices go sky high.  Who cares?  Hit them where it truly hurts!

 

It’s rather like increasing taxes on the “rich.”  Mr. Obama plainly thinks that anybody who makes $250,000 or more per year — including small business owners, whose personal income is misleadingly inflated because their business income is often commingled with it before employees are paid and costs are covered — is enormously wealthy.  Increasing taxes on such people will almost certainly damage both them and our economy, and to very little productive purpose, if any. But perhaps a compromise can be worked out.  How about increasing the taxes on those who make a million or more each year?  I’m told that eight of the ten wealthiest counties in America went for Obama — repeat to yourself, now, that the Republican Party is the party of the rich, and keep on repeating it until it actually becomes true – so I really don’t mind increasing their taxes.  They voted for this, so they should get it.  In spades.  Soak them!  In fact, I would be in favor of confiscating everything Michael Moore and Warren Buffett own.  But, you say, it wouldn’t run the federal government for more than a few minutes?  So what?  The revenue from Mr. Obama’s proposed tax increase on the top 2% will, if it garners as much revenue as it possibly can, keep the feds in business for approximately 8.5 days.  This plainly  isn’t about fiscal sanity or economics.  It’s about jealousy and revenge.  And, now, I say that what’s sauce for the goose is sauce for the gander.  Punish wealthy liberals!

 

 

Print Friendly

  • Jennifer

    “…including small business owners, whose personal income is misleadingly inflated because their business income is often commingled with it before employees are paid and costs are covered ”

    Huh? If small business owners are intermingling their income with their business revenues and expenses, they have far larger tax problems than increasing tax rates. Dr. Peterson would do well to research before he writes such nonsense.

    The fact is, the Republican party is underwritten by businesses, and rich business owners like keeping the Bush tax rates in place. The “job creators” label was coined as a marketing ploy to suggest calamity would befall us if their taxes were raised with the rest of us to pay for the bloated government we all support.

    • danpeterson

      Here’s a website that might conceivably help Jennifer understand the issue of small businesses and Obama’s proposed tax hikes:

      http://www.policymic.com/articles/20179/obama-tax-plan-will-tax-the-middle-class-not-the-rich

      I chose it at random, as the first item that came up in a Google search. There may well be better sites out there, and, if need be, I’ll find them.

      I like the claim that the Republican Party is underwritten by businesses. Despite the evidence indicating that the Democratic Party is, today, the party of the wealthy, it’s really, really important to the self-image of some Democrats that they maintain the myth that they’re downtrodden, poor, and oppressed.

  • Darren

    “Unmarried college kids evidently turned out in large numbers to vote for Barack Obama. I say, therefore, let their pizza prices go sky high. Who cares? Hit them where it truly hurts!”

    Heh! Thats funny.

  • Lucy Mcgee

    The tax code can be modified to keep small business tax at the current rate by modifying deductions, because it is after all the adjusted gross income, which is the important number. A bigger revenue generator would be capturing taxes from large corporations who “offshore” profits, a strategy commonly employed by companies such as Microsoft, Hewlett-Packard, Trans Ocean, etc. which create foreign subsidiaries that become profit centers. Companies like TransOcean, once headquartered in the US, are now headquartered in Switzerland, Bermuda and the Cayman Islands. Corporate tax rates could be lowered and the dollars repatriated in exchange for hiring American workers and increasing the wages of the rank and file (whose incomes have been stagnant for decades).

    The burden of “offshoring” by multinationals is felt not only by small business, but also the communities within which they operate because less tax revenue is available for community development. This is at a time when multinational corporate profits are at an all time high and corporate CEO and upper management incomes have far outpaced the incomes of the average worker.

    It is also amazing to think that people actually need labeling to tell them a stuffed meat and cheese pizza is high in fat, salt and cholesterol. Perhaps food nutrition education would be more useful.

  • Stephen Smoot

    “Unmarried college kids evidently turned out in large numbers to vote for Barack Obama. I say, therefore, let their pizza prices go sky high. Who cares? Hit them where it truly hurts!”

    Lucky for me, I rarely eat pizza, and when I do, it is usually at some social setting where someone else besides me has paid for it. ;-)

    • danpeterson

      Oh, don’t worry. Unmarried college kids are going to pay, big time, whether they eat pizza or not. In fact, it might be argued that the debt burden is going to fall mostly on you and your eventual children, rather than on my generation.

      Justice. Slow but sure.


CLOSE | X

HIDE | X