JEC Releases Report on Obamacare’s $4 TRILLION in Tax Increases
Today, JEC issued a Tax Day report on the tax increases in Obamacare. The major takeaway from the report is that while CBO scores Obamacare as raising taxes by $800 billion over 10 years, the law actually will raise taxes by $4 trillion over 25 years. The total number of tax increases will explode outside the first decade because the law’s new “Cadillac tax” (which doesn’t take effect until 2018) is not indexed to medical inflation, and the “high-income” tax is not indexed to inflation at all.
As a result, the non-partisan Congressional Budget Office (CBO) concluded last year that Obamacare would raise taxes by 1.2 percent of GDP in 2035 (see Table 6-2 on page 65 here). Multiplying the average tax increase impact as a percentage of GDP by the CBO’s estimated economic output for the next 25 years reveals that Obamacare will raise taxes by approximately $4 trillion between now and 2035.
To put Obamacare’s tax increases in further perspective, the law will raise taxes by “only” $15 billion this year, but that number will skyrocket to $320 billion – or nearly $3,300 for a family of four – by 2035.
Sen. DeMint has also written an op-ed in today’s Investor’s Business Daily on the issue. Overall, the report – and the $4 trillion in massive tax increases facing the American people thanks to Obamacare – illustrate perfectly why the 2700-page measure must be repealed.