Health economist John Goodman noted that “three Federal Reserve Banks in Philadelphia, New York and Atlanta have surveyed the folks in their area and roughly one fifth of the employers are saying they cut back on employment.
“Roughly one fifth are saying they’re moving from full time to part time,” Goodman added. “More than one in ten are saying they’re doing more outsourcing – all this because of the new health care reform.”
Doug Holtz-Eakin, former Director of the Congressional Budget Office, said “for the smaller employers — those that have between 20 and 49 employees — you get a negative impact on jobs, you get a negative impact on wages in those jobs. What this means for small business as a whole is over $22 billion of earnings gone for their workers and 350,000 jobs.”
Small business is responsible for the vast majority of job creation in the U.S.
This means an ever decreasing tax base.
The cost of the Obamacare subsidy that the U.S. Treasury will pay on behalf of people who earn under 400 percent of the federal poverty level and who buy a government-approved health-care plan on a government-run health-insurance exchange will increase by approximately 8-fold in its first ten years of operation, according to the latest budget estimate from the Congressional Budget Office.
Medicaid spending will double in the first ten years of full implementation of Obamacare, according to the CBO estimates.
Under the ACA, the exchanges began enrolling people in federally subsidized health-insurance plans and in Medicaid this year.
In fiscal 2013, the year before the health insurance exchanges opened, the federal government spent $265 billion on Medicaid, according to CBO. This year, fiscal 2014, the first year that the exchanges will be in operation, the federal government will spend $305 billion on Medicaid. By 2023, the tenth year that the Obamacare exchanges will be in operation, Medicaid will cost the federal government $539 billion—more than double the $265 billion it cost in 2013.
By 2024, the last year in the CBO estimates, Medicaid spending will climb to $570 billion.
An increasing tax burden on a shrinking tax base. Why what could go wrong?