Why work when the Obama administration will force other Americans to subsidize your choice not to? The Wall Street Journal weighs in on the latest aspect of the ObamaCare debacle, as detailed in a new CBO report.
CBO’s conclusion is that ObamaCare will encourage people to supply less labor by deciding not to take a job or by working fewer hours. The law’s insurance subsidies are gradually taken away as income rises, “creating an implicit tax on additional earnings,” the CBO observes. These effective marginal tax rates reduce the rewards for work—whether it be overtime, accepting a promotion, or training in the hope of higher future earnings. CBO doesn’t note, though we will, that simply extending “free” coverage skews job search decisions by offering an in-kind bonus for unemployment.
In case you’re thinking the Obama administration is gulping hard over this, think again. The Obama administration is ecstatic.
“Claims that the Affordable Care Act hurts jobs are simply belied by the facts in the CBO report,” the White House declared Tuesday. By “facts,” the White House seems to mean that the report is positive because “individuals will be empowered to make choices about their own lives and livelihoods” and “have the opportunity to pursue their dreams.” There you have it: the new American dream of not working.
Thus, the producers in this world are left with this choice: do we laugh or do we cry?
I say we act. ObamaCare must be replaced by a consumer-driven model for health insurance/health care delivery.
