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  • Obamacare Increases Unemployment, Insurance Premiums, Deficit, and Debt

    President Barack Obama and congressional leaders claim that the Senate health bill, which will likely face a vote in the House by the end of the week, will decrease the deficit and bend the cost curve related to health care spending.  However, recent analysis by The Heritage Foundation’s Center for Data Analysis (CDA) shows that this is far from true.  Instead, the bill’s mandates and numerous new taxes will have tumultuous effects.  Passing Obamacare will come at the expense of the American people as it would grow the federal debt, increase premiums, and stifle economic growth.

    The Senate bill would have disastrous effects on the economy and federal spending.  CDA shows that the bill:

    • Increases the federal deficit and national debt. The Congressional Budget Office shows deficit neutrality for the Senate bill—however, this is based on static analysis which ignores the effects new taxes and an individual and employer mandate would have on economic growth.  These provisions would decrease investment in the economy, resulting in lower wages and salaries.  This means less taxable income, lowering federal revenues and growing the debt. Increased borrowing puts upward pressure on interest rates causing some private sector productive investment opportunities to be foregone.  This also increases the interest owed on the national debt, such that the government would pay, on average, $20 billion more in interest between 2010 and 2020.  By the end of the decade, CDA estimates the publicly held debt would be $755 billion dollars more than under current law.

    • Increases insurance premiums. Mandates in the Senate bill would require health plans to offer more generous coverage, increasing the cost of insurance.  Increased spending on premiums, accompanied by increased medical spending, would create upward pressure on prices.  This would further increase government spending, since offering the current levels of care covered by Medicaid and the proposed subsidies would cost significantly more.  Another choice would be to ration provider payments even more severely.
    • Increases unemployment. The bill also places new taxes on “the rich”—or, in more realistic terms, small businesses and those who create jobs.  CDA’s dynamic analysis of the bill shows that an average 690,000 jobs per year would be lost due to the effects described above.

    Americans have recently voiced that Congress’ top legislative priority should be restoring jobs and the economy.  Instead, congressional leaders have focused their agenda on passing the Senate health care bill, which would have the opposite effect of killing jobs growth, suppressing economic growth, and adding to the nation’s already unsustainable levels of federal spending.

    Posted in Obamacare [slideshow_deploy]

    40 Responses to Obamacare Increases Unemployment, Insurance Premiums, Deficit, and Debt

    1. Zack says:

      both bush tax cuts passed the exact same way the healthcare bill is proposed to pass. the tax cuts total cost and increase to the defecit will be over 2.5 trillion dollars, twice the amount of the healthcare bill. bush and the republican led congress added a fiscal defecit of over 6.1 trillion dollars. the only two presidents to double the national debt -bush and reagan. let me tell you whats unconstitutional- tax cuts for the rich. invading a country and sacraficing over a million lives for no reason. profit driven monopolies that insure who has the most money. its funny that you take a blog from some conservative on this website and take it as truth. nothing is unconstitutional about the way this bill will get to the presidents desk. whats funny is when conservatives try and say the american people don’t want health care reform.(its not working) americans do want healthcare. the fear mongering and lies are drying up. you guys are anything but patriots or “freedom fighters”. try doing your own research instead of frantically trying to find “facts” on the heritage foundation website. so embarrasing.

    2. Handy Andy says:

      I think that congress needs to slow down on the insurance deal of bills and constrate on funds for jobs across America the topic of the day from the news channels is directed toward insurance change and not creating jobs for the people.I have had one job in the past two years and this job was short lived due to cut backs.I know that we all need insurance but could this bill possibly help the small business man which contributes to many jobs across America.Enough said I would like to see aturn around for the enonomny .Americans have to have jobs to create a better social toward upward growth.

    3. Zack says:

      Comments are subject to approval and moderation but only if it fits the way we want it to fit. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish unless you provide facts disputing conservative ideals. Please be respectful of each other and the subjects of any criticism but you can call the President a socialist and a radical liberal that is trying to destroy our country, show your birth certificate, etc. While we may not always agree on policy (which we never do because we are right and liberals are wrong), we should all agree that being appropriately informed is everyone’s intention visiting this site because this website always offers information backed by fact and not opinion. ahem… Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated unless of course you are calling the president and democrats evil anti-american socialists. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, but not the rights of same-sex marriage or a true seperation of church and state, we are obligated to our readers to maintain these standards that basically just include being conservative and christian and preferrably anglo-sa….Thanks for joining the one- sided conversation!

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    6. Brad, Chicago says:

      Conn – That was a weak rebuttal. It sounds like you're accepting all of the other criticisms.

      Zack – (not that I expect him to come back to read this) If you don't like it, you don't have to read or post anything, here. The blog writers are entitled to write anything. It's not a coincidence that they are all conservative. That fact is stated quite clearly in multiple places. Comments are subject to the policy you deride so sarcastically. Guess what… yours got through despite adding nothing to the discussion! If you'd like to pay the government to take care of me, you can do as you like. I prefer to keep as much of the money I earn as possible.

      Blog – By controlling the variables the CBO is allowed to base its scoring on, the executive branch is excercising an additional degree of control over Congress. The biggest problem with this whole concept is the sheer scale of the changes. The CBO makes predictions on the cost of bills put before them. How reliable can their score be when there are as many economic changes as there are in this bill? Why should Congress be limited to one score for judging bills, anyway? The more opinions you have, the better picture you get of the truth.

    7. Zack says:

      What makes the government force anybody to take care of anybody else? Which part of 3590 or 3962 requires that? So now Heritage is open to admitting almost everything they write is bias. Let me help you guys a little more. Not only is this website filled with bias information, it is filled with false information. Remember the debt comparrison in respect to Bush and Obama. Did heritage forget to mention that 5.5 Trillion was added under Bush and the republican controlled congress and 6.1 of fiscal defecit increase. By the way, I can guarantee ive seen at least ten comments all over this website in the last 5 months regarding Obama's birth certificate so you get your facts straight. You really need to understand that lowering taxes does not work. Espically both bush tax cuts that will have a defecit increase at about 2.5 trillion dollars as well as bothe bills being passed under partisan republican reconciliation. The hypocracy needs to be presented and repeated over and over. Yeah we would all like to keep as much money as possible and the greates part is you have. Literally 95% of this country has received a federal tax decrease for the last 11 months. Though, it is extremely hard to keep your money when a deregulated market both (health and housing) has been ignored for decades. The only bill that has been presented by republicans, again the only bill covers less then 3 million people. Republicans don't want health care reform nor do conservatives. Remember less then a year ago everyone on the political right was perfectly happy with the status-quo. The fact of the matter is simply this. This website is a joke. Rasmuessen is a joke. Its beyond partisan, non-facutal and just plain embarrasing. Lets see the moderator post this.

    8. Zack says:

      and to be perfectly honest. i have had at least 10 comments disapproved on this website. i know because i wrote every single one. I kept in compliance with the moderators request and they still didn't post them. Its the same with call screeners on rush and hannity. Now, lets talk about trying to silence the opposition. Hypocrits!

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    26. Mark says:

      Poor Zack. He gets handed a ton of facts and all he can do is screech about Bush.

      It's about time you liberals own up to your Community Organizer's failures. Conservatives did. That's why Bush's rating tanked in his last 2 years. Cons were jumping ship. You liberals insist on going down with it. That's fine by me.

    27. Flame, NM says:

      Poor Zach. You keep trying to spread your male bovine excrement like "Literally 95% of this country has received a federal tax decrease for the last 11 months." What you fail to mention is that it was a decrease in the amount of federal tax withheld and once people file their taxes, they find out that they owe more than the decrease from their withholding.

      Every time tax cuts have been implemented, there has been an increase in government revenue, employment, and the economy. Every time tax increases have been implemented, there has been a decrease in government revenue, employment, and the economy. This is not a party issue because the same consequence has occurred when implemented by either Dem or Rep Congress and Administrations.

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    30. Dvae Smith, LaFayette GA says:

      Zach, it’s impossible for 95% of the population to get a federal tax decrease when 40% pay no federal income taxes at all. I have worked in tax prep several years, and I know this to be a fact because of the Low Earned Income Tax Credit.. I have seen hundreds of people walk out of the office with refunds that are hundreds (in some cases 2 or 3 THOUSAND) of dollars more than the total of federal taxes they paid in.

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    32. Leon, Durango, CO says:

      Insurance itself is the major cost of Health Care going up because people use services with other people's money (they think). If everybody in the Medical Market can now be careless about the amount of money they are willing to spend on Health Care, the demand for services will continue to increase and prices rise. There is so much bad medicine now being offered on TV, so many bad drugs with terrible side effects and so many unnecessary tests our overall medical spending is going to explode.

      Look! Medicine doesn't work as well as people think. It is full of waste and junk science (statistical analysis supplanting all other analysis). I'd bet the Graduated Income Tax is the number one reason for the high costs of Health Care because price setters pass through all their taxes to the Consumer. The socialists never look at the Income Tax as the primary source of greed. Ask me, the government wrecks everything it touches. So now the only American Industry left is Energy and the Obamunists are on working full time to wreck it too.

    33. Leon, Durango, CO says:

      Zack, you are being completely dishonest in your assessment. Bush did bad so Obama doing ten times worse is justified? The Democrats are pursuing a strategy of throwing a thousand lies up against the wall to see if something sticks. Heritage presents data against the one sided diatribe of the Left Wing Media. We would hear nothing if the Demolition Plutocrats continued to control all the news. You should be grateful Heritage provides the other side and the middle view. The liberal bias is already overwhelming. What? You want no unbiased news?

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    36. Tim, AR says:

      Zack… I enjoy your posts and welcome your thoughts. That's the beauty of blogs if properly moderated. Too many blogs are just drive by rants where PO'd people can vent. I would like to address 1 of your comments… "deregulated market both (health and housing)"… focusing on the myth of a deregulated housing market.

      Have you investigated the Community Reinvestment Act (CRA)? Go to wiki and check it out… http://en.wikipedia.org/wiki/Community_Reinvestme…. In a nutshell, the fed required banks (that would be a regulation don't ya think?) to loan money to people that were broke so they could buy a house. Imagine the shock when the housing market crashed because people that couldn't afford to buy a house were given loans with ZERO down and payments that were not realistic for their budget. How many times have you loaned money to a broke friend or relative with any hope of ever being re-paid? The CRA was enacted in 1977 by Carter, expanded by Clinton and Bush (yes, I have the intellectual honesty to place some blame on Bush!). This is a prime example of how a regulation caused the problem.

      The CRA could easily lead into a discussion on Fannie Mae & Freddie Mac and their shortcomings.

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    38. Deuce, CA says:

      I know I'm a little late on this blog, but after reading some of the comments (mostly from Zack) I just had to put something down…

      Deficit = 13+ trillion dollars now, Bush leaving office at 5.5 trillion (that was after 8 years and a war). Now I'm only a lonely computer administrator so my math may not be the greatest but i do believe that is almost twice as much as Bush.. but wait.. that is in less then two years!!! OK so Bush 5.5 trillion/8 years.. Obama 7.5+ trillion/2 years.. Do I really need to say it?

      Darn, conservatives are writing a blog, that has to be wrong because they are giving facts and not made up fabricated stats, stories, and labelings that the liberal media does DAILY… National Health Care is an injustice to every Hard working (even those who are unemployed, I hope you all find something soon i was there and got lucky) rich or poor that will have there taxes increased to pay for those who are too lazy to get jobs and just expect the government to pay for everything.. Less Government control, spending, and intervention is the key to economic recovery not raising taxes so the Government can spend more money…

    39. HPNIII says:

      The only financial assumption and I do mean assumption above that holds any water is that private insurance premiums will go up. However having insurance that can be terminated at any time at the discretion of the provider isn't worth a plug nickel if you ever have a major health problem. I mean when you use such crap economics like more items will be covered and put an upward pressure on items covered by Medicare folks you are grasping at straws and proves your desperation to prove something that doesn't exist.

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

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