ObamaCare: you wonder how much the government can screw up something?
Well the hits keep on coming with this atrocity of a law known as the Affordable Care Act, aka ObamaCare. More and more negative nonsense keeps emerging as we get deeper and deeper into its implementation:
In his State of the Union address, President Obama urged Congress to “give America a raise.” Well, it turns out that Obama is giving America a $70 billion annual pay cut, courtesy of Obamacare.
That is the overlooked nugget in the new Congressional Budget Office report detailing the economic costs of Obamacare. While much attention has been paid to the report’s finding that Obamacare will reduce employment by as much as 2.5 million workers, buried on page 117 (Appendix C) is this bombshell: “CBO estimates that the ACA will cause a reduction of roughly 1 percent in aggregate labor compensation over the 2017-2024 period, compared with what it would have been otherwise.”
Translation: Obamacare means a 1 percent pay cut for American workers.
How much does that come to? Since wages and salaries were about $6.85 trillion in 2012 and are expected to exceed $7 trillion in 2013 and 2014, a 1 percent reduction in compensation is going to cost American workers at least $70 billion a year in lost wages.
It gets worse. Most of that $70 billion in lost wages will come from the paychecks of working-class Americans — those who can afford it least. That’s because Obamacare is a tax on work that will affect lower- and middle-income workers who depend on government subsidies for health coverage. The subsidies Obamacare provides depend on income. If your income goes up, your subsidies go down. This means Obamacare effectively traps people in lower-income jobs by imposing an additional tax on every dollar of additional income they earn. Working hard to earn a promotion or get a raise, or taking on additional part-time work — all the things people do to pursue the American Dream — are discouraged by Obamacare. As Keith Hennessey, former chairman of the White House National Economic Council, explains it, “Obamacare punishes additional work, education, job training and professional advancement, anything that generates additional income for those trying to climb into the middle class.”
Emphasis mine. Obamacare provides a disincentive to succeed (as do the majority of government welfare programs). And what is the old saying? If you want more of a behavior, reward it. Want less? Tax it.
The new twist? They then subsidize the cost when they’ve knocked the victim’s income down enough to make insurance unaffordable.
Meanwhile Congressional Democrats and the administration are agitating for a raise in the minimum wage. They take it away with one hand, try to ignore the fact that they’ve done so and demonize the GOP because they’re not pro-minimum wage (or said another way, they actually understand the economic impact of a minimum wage).
If ever there was a picture beside the definition of “dysfunctional government”, it would be this administration’s along with Congressional Democrats.
And beside the definition of “punching bag?” The GOP.