Businesses are unable to plan for ObamaCare’s new mandates and taxes, because of the regulatory complexity. “But at this point, the answer is just not knowable, since regulators still have to write so many regulations, including what health services employers will be required to cover under mandatory insurance.”
When the Congressional Budget Office develops budget estimates, they use a static analysis that only measures direct revenues and expenditures. A dynamic analysis looks at the amount of lost productivity from ObamaCare’s huge tax increases to determine that the economy will produce $706 billion less than it would otherwise. This lost value means the actual debt will be $753 billion higher after 10 years because of ObamaCare.
In the teeth of a severe recession, ObamaCare supporters pushed a government take-over of the health care system filled with job-killing taxes and mandates instead of any activity to promote economic growth. This fact is only now dawning on many progressives. “Rep. Gerry Connolly (D-Va.), the president of this Congress’s first-term Democrats, said that his party’s months-long battle to pass healthcare reform might have come off as a distraction considering the tough economic climate in the U.S.”
With new medical-loss ratio regulations and an expansion of government involvement in the insurance purchasing process, insurance brokers are likely to cease to exist as an industry. “Insurance agents and brokers and small insurance companies are among those who may have to scramble to stay afloat over the next few years. This is partly by design and partly an unintended consequence of a new law that is so sweeping, it will affect nearly every corner of an industry that accounts for one-sixth of the U.S. economy.”
Insurance agents are looking at the government’s plans to create insurance exchanges and are worried that they’ll be made obsolete and driven out of business. They are assuming that the fee insurance companies pay to brokers will be considered an administrative cost by new “medical-loss ratio” regulations and that insurance companies will be forced to lower those costs to comply with ObamaCare.
“Just a few months ago, President Obama signed the health-care bill into law amid much fanfare. But we’re hearing a different tune from small-business owners. They’re asking: How much is this going to cost me, how can I opt out, isn’t there any way to stop this from taking effect?”
In addition to the direct costs of ObamaCare’s $500 billion in new taxes, there are also indirect costs from the new tax regulation. Section 9006 of the law puts vast new reporting requirements on businesses, forcing them to dramatically increase their administrative costs as they now have to report nearly every single business relationship.
ObamaCare is paid for with hundreds of billions in new taxes, and once the budget deceptions are revealed it will force new taxes to pay for it all. “The Democrats’ bill is so massive, so far-reaching, and so poorly designed that its implications for the larger economy (and especially for employment, which should now be Washington’s top priority) could be immense—and disastrous.”
Obamacare would offer major financial rewards for couples who live together but avoid marriage — and it’s extreme marginal tax-rates on a marriage’s second income would provide a strong incentive for the lower-earning spouse (most often the woman) to leave the workforce.
Obamacare would condemn more low-skilled workers to the ranks of the unemployed, with part-time workers — disproportionately women — being hit the hardest.