Friday, February 7, 2014

we've been saying this FOR YEARS

Congressional Budget Office says Obamacare "Creates A Disincentive For People To Work"... well no kidding.

REP. PAUL RYAN: Just to understand this, it is not that employers are laying people off, it's that people aren't working in the work force, aren't supply labor to the equivalent of 2.5 million jobs in 2024, and as a result that work force participation rate, less labor supply, lowers economic growth.

DOUG ELMENDORF, CBO: Yes. That is right, Mr. Chairman.

RYAN: So, who are these workers? Who are the people typically in this category? What kind of worker from an income scale side are being affected by this?

ELMENDORF: The effect is principally on the labor supply of lower wage workers. The reason is what the Affordable Care Act does is to provide subsidies focused on lower and more middle income people to buy health insurance, and in order to encourage sufficient number of people to buy an expensive product like health insurance the subsidies are fairly large in dollar terms. Those subsidies are then withdrawn over time for people as their income rises. By providing heavily subsidized health-insurance to people with very low income and withdrawing those subsidies as income rises, creates a disincentive for people to work, relative to what would have been the case in the absence of that act. These subsidies are, of course, make those lower income people better off. This is an implicit tax, not the sort of tax we normally think about, where if the government raises taxes we are worse off and face a disincentive to work more, but providing a subsidy people are better off, but they do have less incentive to work.
emphasis is mine...


CBO Director: Obamacare "Creates A Disincentive For People To Work" | Video | RealClearPolitics By Tim Hains, February 5, 2014

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