Is Obamacare Big Government?

Spending Money Like

A Drunken Sailor?

Last but not least, President Obama has been labeled as the most dangerous “tax and spend” Democrat to hold the highest office in the nation. Obama’s critics stress that once Obamacare is fully enacted job creators will be billed for generous subsidies to purchase health insurance and increases Medicaid from at least 17 new taxes or penalties imposed to rise over $501 billion. They argue that this kind of spending and taxes will not reduce but actually increase the government’s deficit presently in the tens of trillions. These critics state that the impact of Obamacare over ten years as reported by the Joint Committee on Taxation (JCJ) is but “a tip of the iceberg.” They believe it will cost $4 trillion in higher taxes to pay for Obamacare as estimated by the Joint Economic Committee (JEC) that is three times greater than what JCJ estimated and White House’s relied upon (Senger, 2012).

To stress taxes that will be extracted from the economy, critics of the Affordable Care Act identified the following taxes and cost which will have to be paid by 2019:

·         Hospital Insurance Tax, $210 billion.

·         Mandate Penalties, $65 billion

·         Health Insurance Provider Fee, $60 billion

·         Cadillac Tax, $32 billion

·         Prescription Drug Fees, $27 billion

·         Ethanol Tax, $24 billion

·         Medical Device Tax, $20 billion

·         Business Regulation Cost, $TBA

·         Reducing Medical Deductions, $15 billion

·         FSA Limits, $13 billion (Ibid).

Critics believe Obama would mortgage the future wages of hard-working American families and businesses for job destroying entitlements and subsidies. The taxes transferred from private hands, they argue, to fund Obamacare would stymie economic growth. Money would flow from more efficient market-based allocations to the least efficient means. In addition, work and savings would be discouraged when higher tax rates decrease the incentives for individuals to work and save more, both of which are essential for economic growth (Dubay, 2011).

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