Remember when Speaker Pelosi said we need to pass this bill to see what is in it? When President Obama said that once HRC became law and the public actually saw what the bill would do that we would like it? Well, now that ObamaCare is the law of the land more people are delving into exactly what it entails. Yes, there is some objective good in this bill, but at what cost?
The bill's stated cost is $938 billion over 10 years. But does that include the financial hit already taken by large companies across the nation, in this, just week one of ObamaCare? AT&T said it will take a $1 billion charge due to Obamacare. Earlier this week, Caterpillar took a $100 million writedown. Caterpillar provides generous drug benefits to retirees, largely due to tax-free subsidies; that program now will be taxed. Deere says it will take a $150 million hit, and AK Steel $31 million. If this is the blood drawn in week one, imagine the cumulative effects of a year. $938 billion seems like wishful thinking.
Aside from the simple market economy effects of this bill there is also an approximately 15 million pound gorilla in the room. Democrats are widely believed to be pushing for amnesty for illegals. Regardless of where you stand on this issue, adding another 15 million uninsured into the pool will jump the price tag of ObamaCare considerably.
But wait, isn't this bill supposed to be paid for by taxing the rich? They can afford it right? Well, yes and no. Everything has consequences. America has more millionaires per capita than just about every other nation, and all those people effect the economy. Trickle down economics has a bad name right now, but that doesn't mean it's core principles are in error. According to a recent study ObamaCare will cost an extra $46,000 in taxes for a person who earns $1 million a year. Of course that one million is really $500,000 after-tax. A $46k tax is basically 10%. In a world where everything is relative 10% is a huge chunk of income. This means $46,000 less will be spent on other items that lead to more jobs.
Democrats may have meant well when they passed this bill but they have grossly miscalculated both the short term and long term effects on our economy.
Crossposted at The Moderate Republican.