Friday, May 14, 2010

Obamacare's failure is obvious

It was a certainty to happen, but the onset of failure has been quick:
"Since the law's passage, the news about it has been been unrelentingly bad. With each passing it day, it looks more likely that costs will go up, businesses will face, bureaucratic burdens, and many individuals will lose their current health care plans—just as the law's critics predicted before its passage.

Already, businesses small and large are warning of the ill effects of the law's changes to the tax code. In order to generate the nearly $1 trillion necessary to pay for the law, its authors scoured the tax code looking to squeeze out more money where ever possible. And sure enough, within a few days of its passage, a handful of big companies took tax write downs in response to changes in the tax treatment of an existing drug subsidy. An estimate by Credit Suisse puts the total damage across the economy at around $4.5 billion—with $1 billion coming from AT&T alone.

....Meanwhile, cost projections continue to spiral upwards. The Congressional Budget Office now reports that the law will require an additional $115 billion in previously unreported (and yet unpaid-for) discretionary spending. Medicare's actuary has reported that total medical spending in the U.S. will actually go up and that crucial cuts to Medicare—cuts being used to pay for the law's new entitlement spending—aren't likely to happen, but that Medicare benefits are likely to be reduced. And in Massachusetts, the state whose 2006 health care overhaul served as the model for ObamaCare, insurers have gone to war with the governor, and the state treasurer is warning that the program could drive the state into bankruptcy."
The horror story on this execrable piece is far from over.

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