http://www.atr.org/official-obamacare-trillion-net-tax-hike-...The Congressional Budget Office (CBO) today came out with new scores for Obamacare. The big statistic that caught our eye was that Obamacare is now officially a $1 trillion net tax increase. The reason this number is bigger than in the past is because the gimmicks of that law are now running out. Tax hikes were scheduled to start several years after the passage of the bill, creating many "zero" years on a ten-year score. Well, it;'s been several years, so the window dressing chickens are coming home to roost.In Table 2 of CBO's analysis of repealing Obamacare, they clearly point out how Obamacare is a net tax increase of $1 trillion. If one were to remove the rest of the "zero" years, the net number would be more like $1.1 trillion.ATR has consistently cataloged all 20 new or higher taxes in the President's healthcare law. Now CBO confirms what we have suspected all along--this is one of the largest tax hikes in U.S. history. When fully phased-in, it should permanently raise net taxes by about two-thirds of a percent of GDP.____________________The CBO report is here:http://www.cbo.gov/sites/default/files/cbofiles/attachments/...The list of 20 new or higher taxes is here:http://s3.amazonaws.com/atrfiles/files/files/03232012pr_Obam...Greece, people. You can see it from here.--fleg
Very interesting.In Table 2 of CBO's analysis of repealing Obamacare, they clearly point out how Obamacare is a net tax increase of $1 trillion. If one were to remove the rest of the "zero" years, the net number would be more like $1.1 trillion.This is over ten years. So it works out to an average tax increase of $100 billion per year and ultimately about $163 billion annually in 10 years. This is obviously not good for the economy. And adding these extra taxes without any significant reduction in a trillion dollar annual deficit is extremely irresponsible. It makes it even harder to close the deficit in the future. I would also suggest that revenues will likely fall far short of these projections due to tax avoidance and negative impacts on certain economic activity (drug and medical device innovation and manufacturing, for instance). There may actually be an overall net loss in revenues. I also see that extra outlays (spending) under Obamacare is projected to be $890 billion over 10 years. This comes out to $115-120 billion annually in the latter 5 years. This is the projected cost of Obamacare. Experience with similar programs (Medicare) suggests that actual costs will be much higher. Of course, there are also significant hidden costs of compliance (extra time on paperwork and documentation, for instance) that is not accounted for. These extra costs are real and ultimately will add to our health care bills or decrease our ability to obtain needed health care. And there are also added costs due to mandated extra benefits (coverage until age 26, whatever else the HHS decides to mandate).ATR has consistently cataloged all 20 new or higher taxes in the President's healthcare law. Now CBO confirms what we have suspected all along--this is one of the largest tax hikes in U.S. history. When fully phased-in, it should permanently raise net taxes by about two-thirds of a percent of GDP.It's interesting how proponents of Obamacare only mention the "benefits" of Obamacare without mentioning the costs. The implication is that Obamacare creates these "benefits" out of thin air with a magic wand.The reality is that we will pay... dearly. dave
It's my understanding that the CBO bases its Obamacare cost estimates on what parts of Obamacare are actually implemented at the time of the report and then extrapolates that out over 10 years. In other words, the latest report is based on those features that are in force in 2012. If my understanding is correct (and it might not be), then the projected costs will soar mightily in 2014 when all the subsidies kick in -- when my early-retired millionaire friend gets 2/3 of his premiums subsidized by those of your kids and grandkids who are fortunate enough to be employed and by additional debt assumed, to be paid back by said kids and grandkids during their working lives, assuming they'll remain employed as we become ever more Greece-like.--fleg
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