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