UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: erikinthered100 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 4314  
Subject: Re: It's official -- $1 trillion and counting Date: 10/4/2012 1:34 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
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
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Value Hounds

Netflix Riles Investors
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement