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ObamaCare is a 1% Pay Cut for America

Posted By Daniel Greenfield On February 12, 2014 @ 5:17 pm In The Point | 1 Comment

When Obama kept talking about income inequality, the 99 percent and the 1 percent, who knew this was what he had in mind?

In his State of the Union address, President Obama urged Congress to “give America a raise.” Well, it turns out that Obama is giving America a $70 billion annual pay cut, courtesy of Obamacare.

That is the overlooked nugget in the new Congressional Budget Office report detailing the economic costs of Obamacare. While much attention has been paid to the report’s finding that Obamacare will reduce employment by as much as 2.5 million workers, buried on page 117 (Appendix C) is this bombshell: “CBO estimates that the ACA will cause a reduction of roughly 1 percent in aggregate labor compensation over the 2017-2024 period, compared with what it would have been otherwise.”

Translation: Obamacare means a 1 percent pay cut for American workers.

How much does that come to? Since wages and salaries were about $6.85 trillion in 2012 and are expected to exceed $7 trillion in 2013 and 2014, a 1 percent reduction in compensation is going to cost American workers at least $70 billion a year in lost wages.

It gets worse. Most of that $70 billion in lost wages will come from the paychecks of working-class Americans — those who can afford it least… This means Obamacare effectively traps people in lower-income jobs by imposing an additional tax on every dollar of additional income they earn.

I’m sure that Nancy Pelosi will just explain that it actually liberates those people to pursue their passion of being on Disability.


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