Employer mandate suspension to worsen deficit

Thomas Lifson
President Obama's decision to suspend the employer mandate of ObamaCare will mean that $10 billion in fines, which were expected to be added to federal revenues, will not be received by the United States Treasury. This makes the delay what McClatchy News Service describes as "costly." Employers relieved of the financial burden might choose another word.

Tony Pugh of McClatchy writes:

The Congressional Budget Office estimates the federal government will lose $10 billion in employer penalties in 2015 because of the delayed enforcement. Likewise, many expect that federal outlays to help low- and moderate-income people purchase coverage will grow with employers no longer required to provide coverage next year.

"At a minimum, the federal revenue from fines is gone. More realistically, the costs of already bloated insurance subsidies will escalate and the red ink will rise," said Douglas Holtz-Eakin, president of the American Action Forum, a conservative think tank.

ObamaCare is a hopeless fiasco, a Pandora's Box of unintended consequences. If the media were not hopelessly biased, the public would be aware of the inability of this administration to make this scheme work, and would already be demanding repeal. The GOP must focus on stoking to fires of the repeal movement.

 

President Obama's decision to suspend the employer mandate of ObamaCare will mean that $10 billion in fines, which were expected to be added to federal revenues, will not be received by the United States Treasury. This makes the delay what McClatchy News Service describes as "costly." Employers relieved of the financial burden might choose another word.

Tony Pugh of McClatchy writes:

The Congressional Budget Office estimates the federal government will lose $10 billion in employer penalties in 2015 because of the delayed enforcement. Likewise, many expect that federal outlays to help low- and moderate-income people purchase coverage will grow with employers no longer required to provide coverage next year.

"At a minimum, the federal revenue from fines is gone. More realistically, the costs of already bloated insurance subsidies will escalate and the red ink will rise," said Douglas Holtz-Eakin, president of the American Action Forum, a conservative think tank.

ObamaCare is a hopeless fiasco, a Pandora's Box of unintended consequences. If the media were not hopelessly biased, the public would be aware of the inability of this administration to make this scheme work, and would already be demanding repeal. The GOP must focus on stoking to fires of the repeal movement.