Obamacare Expected to Drive More People Out of Work, Report Shows
The Congressional Budget Office reported on Monday that the growing burden from Obamacare, new spending, and tax cuts will cause the federal government to face $30 trillion in debt before the decade is over.
CBO Analysts blame Obamacare for reversing the progress Washington has made in decreasing the federal debt. They have concluded that Obamacare will pressure an already crippled economy by driving more people out of work in the next five years.
According to the CBO the Affordable Care Act's biggest effect on workers "will come from provisions of the act that raise effective marginal tax rates on earnings, thereby reducing how much some people work. The act also directly imposes higher taxes on some people's labor income."
The Affordable Care Act continues to struggle to attract a sustainable customer base. The CBO has lowered its estimate for the amount of people who will sign up from 21 million to 13 million. Along with this 40 percent drop, customers obtaining taxpayer subsidies are projected to drop by 4 million this year.
The biggest backfire is the projected $750 billion deficit originating from the deal Obama made with Congress last year. The deal awarded Obama with increased spending and Congress with special tax breaks.
Deficits are projected to increase within the next decade, reaching $1 trillion again in 2022 and $1.4 trillion in 2026.
These deficits will cause the public debt to jump from $10.6 trillion when Obama first took the presidency, to $29.3 trillion by 2026.
Analysts projected that "if current laws remained in place," the future public debt will be the highest ever recorded in U.S. history.
Republicans and Democrats are still searching for a strategy to minimize the federal debt, but cannot agree on how. Republicans support tax cuts, while Democrats favor tax increases and more spending to stimulate growth.
According to the CBO report, both tax cuts and tax increases under President Obama's policies have deepened the deficit and attributed to an increasingly grim future.