The Affordable Care Act raises large amounts of money, which means repealing it has revenue implications. The 10-year tax-revenue losses and added health costs are estimated to total about $1.9 trillion. A full repeal would add about $250 billion to the deficit over the decade. Repealing Obamacare could actually cause the deficit to widen somewhat, not narrow.
Note: For this column, I referenced studies by the Committee for a Responsible Federal Budget, the Milken Institute School of Public Health/the Commonwealth Fund, the Urban Institute, and the Federation of American Hospitals/the American Hospital Association.
Steve Rattner, Morning Joe's economic analyst, uses one of our graphs and cites our cost estimate for ACA repeal.
The nonpartisan Committee for a Responsible Federal Budget said earlier this month that repealing President Barack Obama's signature health insurance law in its entirety would cost roughly $350 billion over the next decade. Republicans say a good Obamacare replacement strategy would reduce government spending, but they have not agreed on a consensus plan.
The bipartisan Committee for a Responsible Federal Budget said a full Obamacare repeal could cost $350 billion over the next 10 years.
The resolution does exempt future GOP-sponsored legislation to replace Obamacare from budget rules designed to impose fiscal discipline, according to the Committee for a Responsible Federal Budget. This means the resolution would permit possible tax/revenue cutbacks from an ACA repeal to possibly loop into its replacement program.
The nonpartisan Committee for a Responsible Federal Budget said this month that repealing Obamacare would cost about $350bn (£286bn) over the next decade.
Nonpartisan organizations like the Committee for a Responsible Federal Budget, the Concord Coalition, Fix the Debt and others have put forward real, practical and achievable measures that can be taken quickly and going forward to reduce the debt. Together, these proposals would limit the growth of spending on entitlements, make responsible and fair reforms to the tax code, invest in infrastructure and education, and take other measures to grow the economy without incurring additional debt.
That $362 billion includes income taxes paid by individuals and businesses, as well as payroll taxes (Social Security and Medicare), federal gas taxes, and estate taxes on very large inheritances. It captures nearly all federal revenue — about 90 percent — and is a solid measure to use, according to researchers at the Committee for a Responsible Federal Budget.
Repealing the Affordable Care Act could increase the federal budget deficit by eliminating the taxes that fund the law, as well as provisions meant to keep health-care costs in check, according to the Congressional Budget Office.
"While it acknowledged some uncertainty, the CBO estimated that over a 10-year period, repealing the law would increase federal budget deficits by $353 billion. A more recent estimate by the Committee for a Responsible Federal Budget mirrored what the CBO found -- $350 billion over 10 years," PolitiFact wrote in a Jan. 5 post.
"According to the group's calculations, the revenue losses would be driven by rolling back tax increases on the wealthy. About half of the $800 billion in revenue losses would come from payroll and investments surtaxes on wages and income above $200,000 -- a tax windfall that very few Americans could take advantage of after a repeal. Another quarter of the revenue losses would come from repealing fees on insurers, medical-device companies and drugmakers."
By the way, the most recent Committee for a Responsible Federal Budget estimate finds Trump’s taxing and spending promises would increase the debt by $5.3 trillion to 105% over the next decade as a share of GDP vs. 77% currently. A lot of that comes from the Trump tax plan. Congressional Republicans, though, are promising tax reform will be revenue neutral. And Trump has promised a balanced budget sooner rather than later.
According to new estimates by the Committee for a Responsible Federal Budget (CFRB), a nonpartisan, nonprofit organization dedicated to educating the public on issues with significant fiscal policy impact, repealing the ACA in its entirety would cost somewhere between $150 billion and $350 billion through 2027.
This estimate takes into account the ACA’s various provisions designed to expand health care coverage, as well as offsets that raise taxes and slow the growth of Medicare spending.
According to an article published by the Committee for a Responsible Federal Budget, our national debt nearly doubled during the Obama administration. Two major factors can be attributed to the rising debt: extension of Bush-era tax cuts and Obama-era federal deficit spending.
At the Committee for a Responsible Federal Budget, they put out a report last week that said repeal of Obamacare without a replacement would leave 23 million Americans uninsured while it would actually cost the federal government $350 billion over a decade. That amount drops to $150 billion if the always-controversial dynamic scoring method is used. That approach attempts to estimate increased economic activity over the next 10 years due to changes in taxes and spending.
More to the point, the Committee for a Responsible Federal Budget estimated last week that partial repeal would increase the number of uninsured Americans by 23 million (other estimates are even higher). If you think blowback to the ACA's enactment was bad for Democrats, just wait for the anti-GOP firestorm that follows that sort of disruption.
The nonpartisan Committee for a Responsible Federal Budget said earlier this month that repealing President Barack Obama's signature health insurance law in its entirety would cost roughly $350 billion over the next decade. Republicans say a good Obama care replacement strategy would reduce government spending, but they have not agreed on a consensus plan.
The Tea Party movement, of which I have been an active part since its founding in 2009, all but abandoned its defense of fiscal soundness during the general campaign in 2016. Tea Party Patriots, the nation’s preeminent coalition of Tea Party members and groups, and many other conservative watchdogs said nothing about Trump’s calamitous economic plan. This despite the fact the new president’s plan could add up to $20 trillion to our nation’s debt, according to a recent study by Committee for a Responsible Federal Budget. Its report revealed that our nation’s federal debt would soar to $39.5 trillion by 2026, double the current debt.
"People have misinterpreted this exemption to conclude that CBO wouldn't provide a cost estimate for ACA legislation at all," said Ed Lorenzen, a senior advisor to the Committee for a Responsible Federal Budget and a former senior aide to House Democratic Leader Steny Hoyer of Maryland. "But the exemption only applies to the new requirement for additional information regarding long-term costs in CBO estimates of legislation."
What happened on Wednesday night, explained Ed Lorenzen of the Committee for a Responsible Federal Budget, was about process. The budget measure passed by the Senate needed 51 votes, which it got. Tacking on amendments would have meant it needed 60 votes. For Republicans who wanted to move their bill, that wasn’t an attractive option. They control only 52 seats.
Repealing Obamacare is estimated to increase the budget deficit of the new government as much as $350 billion in the next 10 years, according to Committee for a Responsible Federal Budget report last week.
Allowing Medicare to negotiate drug prices is a popular solution to healthcare costs. But it may not work
Trump actually was ratcheting back from the projections he put forth during the campaign. In those days he projected savings for Medicare of $300 billion a year. That was implausible to say the least, observed the Committee for a Responsible Federal Budget, which otherwise is gung ho for any budget savings; the reason was that Medicare drug spending runs only at about $100 billion a year, total.
Scrapping the Affordable Care Act, it turns out, would be a fiscal loser overall because of the taxes it imposed and the Medicare savings it implemented. The bipartisan Committee for a Responsible Federal Budget recently reported that a full repeal would add between $150 billion and $350 billion to the debt over the next 10 years.
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“Reconciliation legislation is considered under special expedited procedures and should be used to enact the tough choices necessary to reduce the debt trajectory, not to make tax and spending giveaways even easier to deliver,” said Maya MacGuineas, President of the Committee for a Responsible Budget. “Senator Baldwin’s amendment would help ensure reconciliation is part of more responsible budgeting – something we particularly need now when the debt is so high relative to the economy.”
The bipartisan Committee for a Responsible Federal Budget reports that repealing ACA will increase the deficit by $350 billion over the next 10 years. That is right: $350 billion.
If the ACA is repealed, it will cost the economy about $350 billion over the next 10 years, according to a recent Committee for a Responsible Federal Budget report, and it would leave no revenue left over for a replacement plan.
The bipartisan Committee for a Responsible Federal Budget estimates that the spending increases and tax cuts he wants would fatten total deficits by $5.2 trillion by 2026. “That would lead directly to an $800 billion increase in interest costs over a decade, including over $150 billion in (fiscal year) 2026 alone,” it predicts.
The bipartisan Committee for a Responsible Federal Budget estimates that the spending increases and tax cuts he wants would fatten total deficits by $5.2 trillion by 2026. "That would lead directly to an $800 billion increase in interest costs over a decade, including over $150 billion in (fiscal year) 2026 alone," it predicts.
The Committee for a Responsible Federal Budget reports that, “A full repeal of the ACA would cost $350 billion through 2027 under conventional scoring and $150 billion under dynamic scoring.” Attempts to replace the ACA at some point would run into money trouble since “Repealing the entire ACA would leave no funds available for ‘replace’ legislation, and in fact would require further deficit reduction to avoid adding to the debt.”
All of the tax cuts mooted by Trump and Republican leaders, along with planned infrastructure spending, are going to cost money. A pre-election analysis by the Committee for A Responsible Federal Budget found Trump's plans would increase the ratio of public debt to GDP to 105 percent by 2026, compared with its current path of 86 percent.