Whenever austerity measures and budget cutbacks are discussed there is an immediate chorus of “Nooooo’s” that come from the left. Along with their tried-and-true name-calling and mudslinging and claims that it’s a “war on the poor” , “it’s a war on children” and that millions of people will die if they don’t get their food stamps or other entitlements in a timely fashion. Lately, they have even latched on to a nonemotional argument namely that austerity measures and reduced government spending will cripple the slowly healing economy. These are the same economic illiterates who wholeheartedly support “Obamacare” otherwise known as “Obamatax”. Even the Nancy Pelosi and dirty Harry Reid all the way up to the president with all of his epic wisdom have voiced the same concern about spending cuts…
To the extent that their ideas regarding reduced spending could hamper our nonexistent recovery every single first year economics student… And most fifth-graders know that you don’t raise taxes in the middle of her recovery or during a recession. Why then is nobody talking about the disastrous effects which will most certainly follow the largest tax increase in the history of our Republic?
The joint committee on taxation released a report early this year on the tax provisions associated with the affordable care act. The report identified 21 tax increases included in this bill which totaled over $1 trillion… Which was much more than the initial assessment which surprises nobody. In fact this estimate is twice the 500 billion estimate produced at the time the law was passed under less than aboveboard ways. Hasn’t anybody stopped to consider the impact of the government pulling another $1 trillion out of the economy? How about huge amounts of money that will be used by the 20 million or so Americans who up until now didn’t have healthcare premiums to pay? How about the billions of dollars in premium increases that will have to be paid under this new law so that 70-year-old women have reproductive care? This doesn’t even take into account the loss of income that millions of Americans will experience when their jobs are cut back to part-time status to avoid the law. Forbes recently reported that instead of the $2500 per family decrease in healthcare spending Obama care will provide the real number appears to be an increase of $7450 for a typical family of four each year. Every dollar that is spent on healthcare premiums is another dollar that isn’t being spent to stimulate the economy. In short over $1 trillion and possibly as much as $2 trillion will be extracted from the economy in the next 10 years at a time when it is barely limping along as it is. It’s far as I’m concerned the economic consequences are scarier than the health consequences of this huge new tax. Why is no one talking about this? Ohhhh… nevermind.
But didn’t Obama say that everyone’s premiums would go down? What aboout the $2,500 savings for a family of four that he ran for office on and sold this plan to a very skeptical nation with?