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CBO: Obama-Care Will Collect $172B In New Taxes

Buried in the ‘Money & Policy’ section of the New York Times:

Court’s Ruling May Blunt Reach of the Health Law

By ROBERT PEAR | Tuesday, July 24, 2012

WASHINGTON — The Congressional Budget Office said Tuesday that the Supreme Court decision on President Obama’s health care overhaul would probably lead to an increase in the number of uninsured and a modest reduction in the cost to the federal government when compared with estimates before the court ruling.

Of the 33 million people who had been expected to gain coverage under the law, 3 million fewer are now predicted to get insurance, the budget office said in assessing the likely effects of the court decision

While it is not yet clear how many states will ultimately opt out of the expansion, the budget office said it now predicted that six million fewer people would be insured by Medicaid, the federal-state program for low-income people. Half of them, it said, will probably gain private insurance coverage through health insurance exchanges to be established in all states.

On balance, the budget office said, in 2022, “about three million more people will be uninsured” than under its previous estimates. It now says that 30 million people will be uninsured in 2022, against its estimate of 27 million before the Supreme Court decision.

The report estimates that 53 million people are now uninsured and that 60 million would be uninsured in 2022 if the law was repealed, as Republicans in Congress have proposed…

Lest we forget, in their last report back in April, the CBO reported that Obama-Care could cause as many as 20 million people to lose their employer provided healthcare coverage.

So when you add this 6 million from Medicaid to the 20 million losing employer provided insurance, you get 26 million people without health insurance. What was Obama-Care supposed to do again?

In addition, it said, premiums charged for private insurance will be 2 percent higher than previously estimated because the additional subscribers will have lower average incomes, will be in “somewhat poorer health” and will need more care than previously expected.

The report says the insurance coverage provisions of the new law will cost the government $1.7 trillion from 2012 to 2022. That includes $642 billion for Medicaid, $1 trillion for subsidies and $23 billion of tax credits to help small employers buy insurance.

This is the same estimate they made back in April.

But, it said, the expense will be more than offset by revenues from new taxes, penalties and fees and by savings squeezed from Medicare and other government programs.

From 2014 to 2022, the report says, the federal government will collect $55 billion in tax penalties from individuals and families who go without insurance and $117 billion from employers who provide no coverage or inadequate coverage to employees.

Meaning that the Obama-Care tax will be $55 billion on individuals and $117 billion on employers. And we are supposed to think this is good news. We are also supposed to believe that by increasing taxes by $172 billion dollars we are saving money.

The budget office reaffirmed its conclusion that the spending and revenue provisions of the health care law, taken together, would reduce future budget deficits. Savings in Medicare alone are expected to total roughly $700 billion in the coming decade

Does anyone believe this? But even if it is true, these savings are only due to stinting on coverage for people who have actually paid into the system.

But Representative Allyson Y. Schwartz, Democrat of Pennsylvania, said the law was a good deal that would “save $109 billion over the next decade, while increasing access to health care for millions of Americans.”

How do you save money by increasing taxes by $172 billion dollars? And how has the cost of health insurance gone down?

What was the purpose of Obama-Care again?

This article was posted by Steve on Wednesday, July 25th, 2012. Comments are currently closed.

One Response to “CBO: Obama-Care Will Collect $172B In New Taxes”

  1. GetBackJack says:

    Low estimate by … calculating … the total aggregate volume of the entire GDP of the United States + 10% carrying fee.

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