Analysis: Obamacare Will Reduce Compensation By Over a Trillion Dollars
5:01 PM, Feb 8, 2014 • By DANIEL HALPER
New analysis by the minority-side of the Senate Budget Committee finds that Obamacare will reduce compensation by more than $1 trillion between 2017-2024. Analysts in that office have produced this chart to show the lost compensation by year:
As the chart shows, the lost compensation increases every year from an estimated $108 billion in 2017 to an estimated $147 billion 2024. The analysis is based on numbers provided in a recent Congressional Budget Office report on Obamacare.
"The Congressional Budget Office (CBO) estimates that Obamacare will “cause a reduction of roughly 1 percent in aggregate labor compensation [wages, salaries, and fringe benefits] over the 2017-2024 period, compared with what would have been otherwise” (see page 117 of appendix C of CBO’s February 2014 Budget and Economic Outlook). CBO also suggests that the largest effect will occur among lower-wage workers who were the target of the law’s subsidized coverage expansion," says a statement from the Republican-side of the Senate Budget Committee, explaining their methodology.
"CBO’s February 2014 baseline contains projections for total worker compensation under current law; i.e., with the President’s health law in place. 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."
The Republican-side of the Senate Budget Committee is led by ranking member Jeff Sessions, a senator from Alabama.
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