The Senate Budget Committee’s financial prognostications on how Obamacare will affect the economy at least have been more realistic than those of President Barack Obama and his dwindling coterie of partisan supporters. If you trust the Republican contingent on the committee, the Affordable Care Act is on track to sink wages.
Senator Jeff Sessions (R-Ala.), the ranking Republican on the Committee, followed up the Congressional Budget Office’s damning report on Obamacare last week by releasing an analysis of how the law will affect real earnings over the next 10 years. Of course it isn’t pretty.
According to the committee’s GOP wing, Obamacare is not only hurting actual hours worked; it’s also hurting the amount of money those who are working will bring home. Overall, Sessions anticipates the law will reduce earned compensation by more than $1 trillion between 2017 (when Obamacare’s supposed to be in full force) and 2024.
“CBO’s February 2014 baseline contains projections for total worker compensation under current law; i.e., with the President’s health law in place,” report Committee Republicans. “Senate Budget Committee Republican staff took these nominal dollar estimates and adjusted them to account for the 1 percent reduction that CBO attributes to the health care law, in order to determine what total compensation would have been if the law had not been enacted. The difference between the status quo and the status quo ante amounts to $1.016 trillion in reduced compensation over the 2017–2024 period.”