Obamacare will be a job killer for years to come: CBO

(BigGovernment.news) The Affordable Care Act is the nightmare that will keep repeating itself over and over again long after the president responsible for it is out of office.

A recent report [PDF] from the Congressional Budget Office estimated that some 2 million workers may opt out of the workforce over the next decade because of Obamacare – and at a time when an aging U.S. population is likely to create a shortage of domestic workers.

The report estimated that the U.S. workforce is projected to contract by just under 1 percent by the year 2025, the equivalent of 2 million full-time employees, because of the onerous, expensive regulations and requirements mandated by the law, as well as incentives for workers.

“Some people would choose to work fewer hours; others would leave the labor force entirely or remain unemployed for longer than they otherwise would,” the CBO said in its report.

The law says that consumers don’t have to rely on employers for health insurance, and can instead buy coverage through a state exchange or the federal exchange at Healthcare.gov. Also, Obamacare created subsidies for lower-income consumers, which the CBO said would raise the “effective tax rate on earnings” on workers who no longer qualify for subsidies due to rising incomes.

CBO analysts said those two factors alone would lead some workers to choose retirement or to work part time rather than full-time.

The report predicated much of the decline in workers on increased tax rates, expansion of new coverage and penalties on individuals for not providing or having insurance. Those provisions, the nonpartisan agency noted, could entice workers to either leave their jobs or cut their own hours.

CBO noted that the effects of Obamacare on the labor force is largely uncertain because it will depend on what workers opt to do in response to the incentives the law creates, which includes the choice of gaining coverage separate from employers.

Reports The Daily Signal:

The CBO’s findings come just days after the Senate passed a reconciliation package repealing key provisions of the health care law for the first time. The House is expected to approve the legislation. However, President Barack Obama will veto the repeal package once it gets to his desk.

“When the president’s health law hurts the labor force at the same time it increases health care premiums and taxes, it’s clear the law is not working for the American people,” Sen. Orrin Hatch, R-Utah, said. “The CBO’s latest report confirms yet another broken promise and negative consequence stemming from Obamacare.”

Previously, CBO projected that some 2.5 million workers could leave the workforce by 2024 because of Obamacare.

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