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CBO Also Said O-Care Will Lose $70B In Wages

From Marc Thiessen’s latest column at the Washington Post:

Obamacare’s $70 billion pay cut

By Marc A. Thiessen | February 10, 2014

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.

It’s just the latest front in Obama and the Democrats’ ‘War On Work.’

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.

That’s okay. Look at all the extra quality time you’re going to have to spend with your families. Time you can spend telling your kids why there is no food on the table, or why you can’t afford to send them to college.

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… This means Obamacare effectively traps people in lower-income jobs by imposing an additional tax on every dollar of additional income they earn…

No, no, no. The only trap here is the dreaded ‘insurance trap’ which leads to the dreaded ‘job lock.’ Which is what we used to call having a steady fulltime job. A career.

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.”

This is true of our redistributionist progressive tax system in general, of course.

This makes a mockery of the “opportunity agenda” President Obama announced with such fanfare in his State of the Union address a few weeks ago. In his address, Obama bemoaned the fact that over the past four years, “average wages have barely budged. Inequality has deepened. Upward mobility has stalled.” …

How can Obama complain that “average wages have barely budged” when the CBO says the signature initiative of his presidency will cut average wages by $70 billion? How can Obama complain about “income inequality” when Obamacare is reducing the incomes of working-class families? How can Obama say he is for upward mobility when the law that bears his name stifles mobility by encouraging millions of Americans to work less? How can Obama promise to “build new ladders of opportunity into the middle class” when Obamacare kicks the ladder of opportunity out from under working-class Americans?

Here’s another one: How can Obama say we need to raise the minimum wage, when he is reducing the wages of all workers across the board by 1%?

Obamacare is an economic disaster for the country — because it will shrink the economy by encouraging people to work less…

It will also shrink the tax base by 1%. When we have just implemented the biggest new taxpayer funded entitlement in history.

It is also a political disaster for Obama — because it turns his promise to focus on opportunity into nothing more than empty rhetoric. The biggest obstacle to Obama’s “opportunity agenda” is Obamacare. For millions, the price of Obamacare is sacrificing their rise up the ladder of opportunity…

Here Mr. Thiessen is mistaken. Democrats don’t want people moving up the ladder. People moving up the ladder don’t need government. They don’t need Democrats.

This article was posted by Steve on Tuesday, February 11th, 2014. Comments are currently closed.

4 Responses to “CBO Also Said O-Care Will Lose $70B In Wages”

  1. AcornsRNutz says:

    Well Marc, welcome to Reality. Population: increasing. Too bad this place was such a ghost town two years ago.

  2. GetBackJack says:

    .. and today the Obamas dine on Caviar, Quail Eggs, dry aged rib eyes, French champagne and Hawaiian chocolates made with Vermont maple syrup … in a tent decorated to appear to be a Monet Spring in gay Paree while reclining on embroidered French sofas with the French President ..

    .. the One Percent and the taxpayer.

    The Revolution will be bloody, atrocious and thorough.

    • captstubby says:

      Obama Eliminates Breakfast for US Troops in Afghanistan, Stuffs Own Face
      Daniel Greenfield January 31, 2013
      The Army has stopped serving cooked breakfasts to some of the U.S. soldiers in Afghanistan as part of its drawdown, a move that prompted troops to write home asking their families and friends to send care packages with cereal, breakfast bars and other foods.
      The Army told the Washington Guardian the current cutbacks began Jan. 1, and affect about 2,700 soldiers deployed in forward operating bases in more remote areas of Afghanistan.
      The Washington Guardian reported earlier this month that the current budget crisis in Congress prompted Deputy Defense Secretary Ashton Carter to write a memo order preparations for sweeping budget cuts across all military programs to begin as early as next month.
      Officials stressed other comforts at the forward operating bases may also soon be reduced, such as laundry and recreation, as officials look for other ways to reduce the American footprint in advance of departing the country.
      They said the meal cutbacks are currently affecting forward operating bases in more remote areas of Afghanistan and not affecting the main American bases in Kabul and Kandahar.
      Exit questions. How many cooked breakfasts for soldiers would Obama’s 20 million dollar Hawaii vacations and the 1.4 billion that his clan’s non-stop partying buy?
      While American soldiers go hungry, here is what Obama and his corrupt cronies had for their inaugural lunch.
      First Course: Steamed Lobster with New England Clam Chowder Sauce, Sautéed Spinach, Sweet Potato Hay
      Second Course: Hickory-Grilled Bison with Red Potato Horseradish Cake, Butternut Squash Purée, Baby Golden Beets and Green Beans, Strawberry Preserve and Red Cabbage
      Third Course: Hudson Valley Apple Pie with Sour Cream Ice Cream, Artisan Cheeses
      Wines: Tierce Finger Lakes Dry Riesling (2010), Korbel Natural, Special Inaugural Cuvée California Champagne, Bedell Cellars Merlot (2009)
      comments by current and former service members
      How outrageous – when I was in the US Army – it was a requirement that they provide 3 hot meals a day unless in field. Failure to provide that was grounds for an immediate honorable discharge.
      Warrant Officer
      US Army/US Army Reserves
      I’m over here in Afghanistan right now and it’s no “crock”. I’m on Bagram and they just stopped hot breakfasts here as of 1 Feb. This isn’t about winning or losing it’s about what the current President is doing against the country he is supposed to support.
      I’m glad I got out when I did. There were two things in Afghanastan worth looking forward to. Going Home, and hot meals. Now the hot meals were not exactly gourmet, but they got you through the day.
      When I ran a mess hall it was stressed to us to do the very best job possible because meals are part of a soliders pay. This is a violation of soliders’ rights. Where is Congress on this?
      “let them eat Cake…
      or how about Iron rations?

      nearly 40 years ago …
      The black tie dinner Richard Nixon gave 600 newly freed prisoners of North Vietnam remains the biggest one held in White House history. Technically, it was outside the White House beneath an enormous red and gold tent within whose folds glowed chandeliers. The White House had to borrow two refrigerator vans from the army to keep the first course (Supreme of Seafood Neptune) and dessert (strawberry mousse) at precisely 36 degrees. Nixon also served the POWs the biggest names in entertainment. Jimmy Stewart. Bob Hope. John Wayne.

      Field Marshal Sir William Slim. was the commander of the British 14th Army in the Burma Campaign of World War II.
      I tell you as officers, that you will not eat, sleep, smoke, sit down, or lie down until your soldiers have had a chance to do these things. If you hold to this, they will follow you to the ends of the earth, if you do not, will break you in front of your regiments Quite simply, you put the needs of your troops ahead of your own with every chance you get. As a platoon leader, I had a simple rule in the field, no squad leader could eat until all of his soldiers had eaten, the platoon sergeant could not eat until all of the squad leaders had eaten, and I could not eat until the platoon sergeant had eaten. On the surface it appears a minor gesture but to the soldiers it cements the bond between the leader and those led. Spare no effort to praise and reward soldiers for outstanding performance it costs nothing and gains everything. Help them solve their problems and you will earn their loyalty. Remember, soldiers are smart and can smell a phony a mile away. Get to know the soldiers in your platoon. After three months, you should know their names, names of family members, home towns,and any unique problems with which you can help. Showcase your good soldiers to the company and battalion commanders. This way, when it comes time to approve their awards, they will remember the soldiers and approve them. If you take good care of your soldiers they will take care of you.

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