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Former CBO Director Douglas Holtz-Eakin on the economic impact of the taxes in the health-care law.
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This and -- one of my favorite gas there's no doubt about it obamacare is starting to hit the middle class hard.
House ways and means oversight commit subcommittee part of the committee responsible for writing tax laws.
Holding hearings on obamacare today my next guest was called in to testify does -- -- -- president the American action forum and a former CBO director.
-- welcome back to the show it's always great to ZEO.
You know I was reading through your testimony and it occurred to me that we had had big promises.
About how the middle class would be treated.
Regarding Obama care and those promises are not turning out.
To be true.
I think that's unmistakable mean obamacare has a lot of taxes and and I -- I think people miss that when they hear about the law this is 800 billion dollars in new taxes and when you hear that kind of number -- -- they -- well who's really gonna foot the bill and in the end.
A lot of these taxes are gonna show -- as higher insurance premiums middle class -- gonna -- that bill.
But some of them are your taxes directly on their policy is no fassel foot that bill.
And a lot of them are gonna harm economic growth and in the end we know how many workers are out there we know how poor income growth has been there's no question who pays that told.
Well he walked -- some of these taxes I think even now people don't really understand what we're gonna be on the hook for our already.
Health insurance premiums cash which just mentioned which is gonna flow right through to American families.
Medical device tech which is is going to be devastating to those companies -- wouldn't lose their jobs Medicare taxes.
Employer and individual insurance annaly Cadillac health insurance plan went attacks which we haven't talked about long time.
Ultimately.
-- this program going to be able to pay for itself we were promised that it wasn't gonna raise the deficit will it.
I don't see how there's any way that it can't raise the deficit I mean.
Does the program itself is gonna grow at double digit rates over the first ten years there is no way that we're gonna have an economy that -- double digit rates.
You won't see taxes get raised -- double digit rates so.
This is larger entitlement spending at a time when that is already a big problem it takes the deficit and the debt the wrong direction.
And you know Gerry -- be one thing but if we got something forward if we got better health care higher quality lower costs.
We got better economic growth you might think differently about it but.
It was enacted -- time we really need better growth policies and we really needed to get health care spending under control and I think most people agree it doesn't do that.
Well I you know interestingly at the idea keeping spending under control.
It it's only going to increase -- I think I.
We've been talking to people about that issue all week long.
I was promised I can keep my doctor doesn't look like I'm gonna have a doctor -- might have to go with the nurse.
I can keep my health care plan there may not be -- health care plan at my company anymore if you listen to what some of the CEOs of say.
Kroger are saying because it can be cheaper for them to just get rid of their plans and pay the tax or penalty whatever you want to call -- this week.
And this is going to transform.
I mean literally transform.
Health care as we know it and a lot of people think not a good way.
It's going to transform health -- we know it and the insurance as we know it.
On the first I don't think anyone believes we've got the kinds of reforms that would give us the freedom of choice for our doctors lower cost higher quality.
I think the most important thing Jerry's its going to transform the workplace as you mentioned a lot of companies are gonna get out of the business health insurance.
That's gonna raise the cost by the way -- all of that's gonna be subsidized.
It's gonna cause a lot -- of part time hiring it's gonna hurt small businesses from their hiring.
It's going to completely transform the insurance policies you have.
This is a revolution and it begins in 2014.
It's it's no longer going to be a hypothetical and I think many people are are really quite afraid of the consequences.
You know company sponsored health care wasn't perfect.
But it was in place for sixty years and we didn't have to pay for it -- amazing to me were making this choice that thanks for coming on always good to see you thank you thank you there.
