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CBO: Workers Will Cut Hours To Keep Subsidies

From a gobsmacked Reuters:

Obamacare to cut work hours by equivalent of 2 million jobs: CBO

By David Morgan and David Lawder | February 4, 2014

WASHINGTON (Reuters) – President Barack Obama’s healthcare law will reduce the American workforce by the equivalent of 2 million full-time workers in 2017, the Congressional Budget Office said on Tuesday, prompting Republicans to paint the law as bad medicine for the U.S. economy.

What a typical lead from Reuters. Here we have such bad news they can’t even disguise it. But Reuters has to immediately tack on how the Republicans are going to try to exploit this to their favor. And never mind that it is truly bad news for the country.

In its latest U.S. fiscal outlook, the nonpartisan CBO said the health law would lead some workers, particularly those with lower incomes, to limit their hours to avoid losing federal subsidies that Obamacare provides to help pay for health insurance and other healthcare costs.

And never mind how employers will also limit hours to reduce their costs because of the Obama employer mandate. (Which our news media and the rest of the Democrat Party have told us is a myth.)

White House officials characterized reduced hours as a reflection of new choices for workers. CBO officials pointed to older workers as one example, saying some nearing retirement could decide to keep their work hours shorter to maintain healthcare subsidies until they qualified for Medicare.

You see? This isn’t bad news, after all. American workers will now have ‘the choice’ to work less, and make less money, so they can keep their penny ante Obama-Care subsidies. And, if they are lucky, they might even have ‘the choice’ to work several part time jobs, because their full time job has disappeared. Oh, happy days.

But the report also referred to healthcare subsidies in less upbeat terms, saying assistance would "reduce incentives to work" and pose an "implicit tax on working" for those returning to a job with health insurance.

The hell you say! How on earth could a welfare benefit ever reduce incentives to work?

The biggest impact would begin in 2017, CBO said, because major provisions of the law, including an expansion of the Medicaid program for the poor in half of the 50 U.S. states, will be well under way by then. The CBO said there would be smaller declines in work hours that would occur before then.

In other words, the worst impact from Obama-Care will happen after the 2016 elections. What a coincidence!

Work hours would be reduced by the equivalent of 2.5 million jobs in 2024, said the agency, which earlier predicted 800,000 fewer full-time jobs by 2021. The bottom line would be a slower rate of growth for employment and compensation in the coming decade, according to the report.

But everyone will have more ‘choice.’

The link that the CBO drew between the health law and slower employment growth is likely to become fodder for partisan attacks in this year’s congressional election battle, which will determine who controls Congress in the final years of the Obama presidency…

Isn’t that terrible? Why should we have "partisan" attacks over this? Nobody wanted Obama-Care to do this. Everyone had the best of intentions. And nobody could have seen this coming.

Republicans, who have already made Obama’s Patient Protection and Affordable Care Act (ACA) a top campaign issue for November, seized on the CBO report to press their argument that Obamacare is putting a damper on jobs growth and the economy…

But don’t worry. The news media will put their ‘fact checkers’ to work. And they will find a way to explain to us how we didn’t understand what the CBO is saying.

This article was posted by Steve Gilbert on Thursday, February 6th, 2014. Comments are currently closed.

2 Responses to “CBO: Workers Will Cut Hours To Keep Subsidies”

  1. captstubby

    “find a way to explain to us …”
    ABC/Yahoo “news” already issued this to the Workers.
    “Everyone knows that the GOP plans to hang the unpopular law around the necks of Democrats – especially senators from red states elected (or reelected) in 2008, when Obama himself swept into office. They’ll be tying them to canceled policies and feature employers who blame Obamacare for rising premiums. And they’ll stoke the anger of voters who see the requirement that Americans have health insurance as an unacceptable government infringement on their rights.
    The president will keep making the argument that he’s prepared to work with Republicans to fix the law — a nod to bipartisanship, sure, but also an effort to get voters to ask for details of the GOP plan.
    The Democrats’ goal will be to turn the election from a referendum on the struggling president and Obamacare into a choice between his party’s policies and those of Republicans.
    One thing Obama probably won’t do: Appear at campaign events alongside Democrats facing tough reelection fights. Instead, Democrats say, he’ll focus heavily on fundraising for the Democratic Senatorial Campaign Committee and Democratic Congressional Campaign Committee.
    The latest Obamacare controversy hasn’t made the Democrats’ job any easier. Much of the initial media coverage of the latest Congressional Budget Office study incorrectly claimed 2.5 million Americans would lose their jobs. The reality: It’s definitely a mixed bag, but people aren’t being laid off.”

    http://news.yahoo.com/the-whit.....33844.html

  2. Why did the chicken cross the Mobius Strip?

    To get the to the same side

    (journalism logic)




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