New numbers from the Congressional Budget Office claim that Obamacare will reduce the labor force by about 2 million full-time workers over the next decade. Oregon, Hawaii, and Nevada have now scrapped state exchanges joining 34 states already using the federal site.
The report estimates the Affordable Care Act, or ACA, will make the labor supply shrink by 0.86 percent in 2025. This amounts to a shrinkage equivalent to approximately 2 million full-time workers.
The nonpartisan CBO estimates that the decline will come primarily due to workers responding to changes made by the law to federal programs and tax policy. The agency points to the introduction of health care subsidies tied to income as a key factor — that in turn raises effective tax rates as someone’s earnings rise, therefore reducing the amount of work Americans choose to do.
“Subsidies decline as income increases, reducing the return on earning additional income,” the report says. “That decline is effectively an increase in recipients’ effective marginal tax rate, so it generally reduces their work incentives through the substitution effect.”
Since the subsidies also reduce the burdens attached to unemployment, the CBO predicts that the law will create additional “work disincentives” for those who are unemployed for part of the year. It concludes that the exchange subsidies will contribute to half of the overall reduction of the labor supply.
If you like the efficiency of our Postal System, the Department of Education, the Internal Revenue Service, and – most importantly – the Veterans Administration, you are going to LOVE government-run healthcare. You see now, boys and girls, what you create when you elevate a community organizer to the most powerful position in the world. Mix in a healthy dose of narcissism, and you get a progressive who believes he can say anything, and it will be believed.
That is Obama, and he is squarely on those of you who continue to support him.
H/T: Fox News
What are your thoughts about this debacle? Will anyone step up and fix this problem? What candidate do you think will do what he/she says and repeal this law that is hurting America? Share your comments below.
The Federal government mucks up everything it touches. This is the simple test to know what is going on. When a city cannot fix its potholes, it is spending its resources on the wrong stuff. When the Federal government cannot control its borders, it is spending its resources on the wrong stuff. What the hekk is the Federal governmnent doing messing with healthcare????
My wife agrees with me, Jan. 1st we will be canceling Obamacare and will tell the government where they can stick it!
I suggest you check the penalties for next year before you decide to take this course of action. The penalties in 2016 will be massive and they will be enforced. The government has us by the short hairs and the congress lacks the balls to do anything about it. Don’t cut off your nose to spite your face.
Yes there is someone to fix it. Donald J Trump. #Trump2016
For a basis on which to analyze the ‘opinion’ piece, refer to :
https://en.wikipedia.org/wiki/Lies,_damned_lies,_and_statistics
Disincentives against the ACA start with the 50-odd unsuccessful Republican efforts to repeal the law while offering alternatives. Governors refusing to provide health insurance to their citizens by setting up or joining the Federal exchange was a partisan effort to deny its success.
No employer WANTS to deny their employees access to health care. Some believe their contribution to health insurance premiums as an employee benefit will put them out of business. That is debatable – on a case by case basis. Other employers don’t consider worker health (or safety) to be their concern – or that of government (general democratic citizen policy) business. MAXIMIZED profit is the over-riding goal. The ACA, though compromised in a limiting way with deference to ‘organized’ health and pharmaceutical industry (1%) lobbying, increases available coverage, expands ‘family’ coverage for young adults and prohibits denial based on pre-existing conditions.
The percentage of workers whose ‘raises’ change their tax rate AND eligibility for subsidy under the Affordable Care ACT to the detriment of their disposable income suggests they MAY decide to forego health insurance and pay a penalty instead. A Congress finding fault with this aspect of the ACA COULD choose one of two options – (a) modify the law to correct the narrow range of affected workers or (b) “throw out the baby with the bath water”by repealing the law in a partisan effort to counteract the (admitted) likelihood that (as with Social Security, Medicare, the 40 hour work week, ending child labor, women’s right to vote, Environmental Protection, Occupational Health and Safety, etc) humane social populism expands Democratic Party support. Fear and division based on narrow ‘social’ opinions and groupings is the Republican Party electoral game plan of choice. THE POLITICAL INSIDER serves that effort well.
This article is a joke. Just another hit piece. Fire away. Nobodys listening.
Unce Bck…you usthae voed for Obam If so..f u ad al thers lie ou. We ave a Nation to repairue to morons like you.
Unce Buck…you must have voted for Obama If so..f u and all others like you. We have a Nation to repair due to morons like you.
A few years of Obamacare are you will be cying for your mothers milk.
It’s not difficult to spot a Democrat
The world is indebted for all triumphs which have been gained by reason and humanity over error and oppression.
Thomas Jefferson
If we can but prevent the government from wasting the labours of the people, under the pretence of taking care of them, they must become happy.
Thomas Jefferson
For a people who are free, and who mean to remain so, a well-organized and armed militia is their best security.
Three of the most liberal states sending very liberal Senators and Representatives to DC. Obamacare blowing up I their faces.