February 4, 2014
CBO: Obamacare to Push Millions Out of Labor Market, Reduce Incomes of Most AmericansTopics: Political News and commentaries
More bad news on Obamacare ... this time its a CBO report showing that Obama's healthcare law rammed through by the Democrats without a single Republican vote will push up to 2 million Americans out of the labor market and cause many more to have their work hours reduced.
Via The Washington Times:
Obamacare will push the equivalent of about 2 million workers out of the labor market by 2017 as employees decide either to work fewer hours or drop out altogether, according to the latest estimates Tuesday from the Congressional Budget Office.More here.
That's a major jump in the nonpartisan budget agency's projections and it suggests the health care law's incentives are driving businesses and people to choose government-sponsored benefits rather than work.
"CBO estimates that the ACA will reduce the total number of hours worked, on net, by about 1.5 to 2 percent during the period from 2017 to 2024, almost entirely because workers will choose to supply less labor -- given the new taxes and other incentives they will face and the financial benefits some will receive," CBO analysts wrote in their new economic outlook.
However, the news gets even worse. According to The Washington Examiner,Obamacare will result in the reduction of the income of about 80% of Americans. Furthermore, Obamacare is indeed a hughe income redistribution scheme:
A new study finds that Obamacare's redistribution will be stunningly lopsided. Scholars at the liberal Brookings Institution have discovered that Obamacare will increase the income of Americans in the lowest 20 percent of the income scale, and especially in the lowest ten percent. But all other income groups -- even people who make very modest incomes in the $25,000 to $30,000 range, as well as all income brackets above that -- will experience a decline in income because of Obamacare.More here.
In other words, Obamacare is going to cost some of the very people it was designed to help.
Brookings scholars Henry Aaron and Gary Burtless sought to determine the law's impact on income in 2016, when almost all of Obamacare will be in effect. To do so, they adopted a broad definition of income -- not just a person's wages, but also pension income, employer health coverage, government cash transfers, food stamps, other benefits, and now, subsidies from Obamacare.
They found quite an impact. "The ACA may do more to change the income distribution than any other recently enacted law," Aaron and Burtless wrote. Obamacare provides billions in subsidies to those who qualify, expands Medicaid benefits, cuts Medicare, fines those who don't purchase government-approved coverage and levies new taxes -- all of which will change how much income millions of Americans bring in each year.
As bad as the actual economy and job situation has been under Obama up to now, this leaves little doubt that his presidency is going to have long-lasting detrimental effects that just might never be reversed unless the law is repealed and replaced ... or significantly modified. And yes, it's perfectly clear that Obama's original intent ... the redistribution of income ... has been part and parcel of Obamacare from day 1.
Posted by Hyscience at February 4, 2014 4:24 PM
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