DENVER–The Congressional Budget Office (CBO) has released a report that the Affordable Care Act (ACA), better-known as Obamacare, will “make the labor supply, measured as the total compensation paid to workers, 0.86 percent smaller in 2025 than it would have been in the absence of that law.”
The workforce is projected to be about 2 million full-time-equivalent workers smaller in 2025 under the ACA than it would have been otherwise. Health care reform advocates, free-market advocates and the business community and labor unions have universally criticized the health care law.
The majority of the lost workers is a result of raised effective tax rates on earnings from labor. Health insurance expansions phase out subsidies as income rises and in turn reduces the amount of labor workers choose to supply, according to CBO.
Advancing Colorado Executive Director Jonathan Lockwood released the following statement:
“Obamacare is a weapon of mass destruction when it comes to jobs and the economy and it was all for nothing. People are seeing their health care costs skyrocket, they are losing their doctors and medications they need, and they have lost their plans and freedom of choice. Every day it gets clearer and clearer why we must see this disaster repealed and replaced with sensible reforms.”