What impact will Obamacare have on the deficit?
“Critics of the Affordable Care Act keep insisting that the law will increase the deficit. But the best evidence we have, from the most trusted authorities we have, suggests that those critics are wrong – and that the law, if anything, will reduce the deficit.
I know that many people find that difficult to believe. But, really, it’s neither complicated nor far-fetched. The law spends a lot of money, in order to make Medicaid available to more people and to provide subsidies for lower- and middle-income Americans buying private insurance. But it also finds a lot of money to pay for those new expenditures—mainly by raising some taxes, mostly on very wealthy people, and then reducing the cost of Medicare, mostly through cuts designed to eliminate corporate welfare or foster more efficient treatment.”
- Jonathan Cohn, Today in Hackery: The Latest Attack on Obamacare
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