Martin Feldstein Warns that Obamacare Could Run $2 Trillion - The American Spectator | USA News and Politics
Martin Feldstein Warns that Obamacare Could Run $2 Trillion
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So much for a reform that pays for itself.  Economist Martin Feldstein takes a hard look at “the exploding path of fiscal deficits,” which would be made far worse by Obamacare.  He writes:

For starters, $1 trillion of extra debt-financed spending would cause the government to pay about $300 billion of extra interest in the next decade. Moreover, the CBO’s method of estimating the cost of such a program doesn’t recognize the incentives it creates for households and firms to change their behavior.

The House health-care bill gives a large subsidy to millions of families with incomes up to three times the poverty level (i.e., up to $66,000 now for a family of four) if they buy their insurance through one of the newly created “insurance exchanges,” but not if they get their insurance from their employer. The CBO’s cost estimate understates the number who would receive the subsidy because it ignores the incentive for many firms to drop employer-provided coverage. It also ignores the strong incentive that individuals would have to reduce reportable cash incomes to qualify for higher subsidy rates. The total cost of ObamaCare over the next decade likely would be closer to $2 trillion than to $1 trillion.

Workers had better have gotten a good rest yesterday.  They are going to be laboring into their next life to pay off all the federal debt.

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