Health Care Law Will Result in Higher Taxes, More Uninsured, and Higher Costs
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Let me summarize the key points from the Congressional Budget Office’s and the Joint Committee on Taxation’s estimates of the Personal Protection and Affordable Care Act (PPACA):
- It will cost $84 billion less.
- 3-4 million more people will be uninsured.
- Premiums will rise by $400 more on to families who buy health insurance on the individual market.
Then there’s this $5 billion dollar ditty:
According to the updated estimates, the amount of deficit reduction from penalty payments and other effects on tax revenues under the ACA will be $5 billion more than previously estimated. That change primarily reflects a $4 billion increase in collections from such payments by employers, a $1 billion increase in such payments by individuals, and an increase of less than $500 million in tax revenues stemming from a small reduction in employment-based coverage, which will lead to a larger share of total compensation taking the form of taxable wages and salaries and a smaller share taking the form of nontaxable health benefits.
Employers will pay more in penalties, and employees will pay more in both penalties and in higher taxes as their total compensation is shifted from health insurance to wages.
More taxes, more uninsured, and higher costs. This bad law isn’t getting any better.