Today, the Congressional Budget Office (CBO) and the Joint Committee on Taxation (JCT) released analysis showing Democrats’ proposal to significantly expand Obamacare tax subsidies would add billions of dollars to the federal deficit to the benefit of wealthy Americans.
The analysis was in response to a letter requesting the true cost of an expansion of premium tax credits (PTC) sent by Senator Richard Burr (R-NC), Ranking Member of the Senate Health, Education, Labor and Pensions Committee, Senator Mike Crapo (R-ID), Ranking Member of the Senate Committee on Finance, and Senator Lindsey Graham (R-SC), Ranking Member of the Senate Budget Committee.
Statement from Senators Burr, Crapo, and Graham in response to CBO and JCT’s analysis:
“The Congressional Budget Office and the Joint Committee on Taxation have confirmed what we already knew: the true cost of Democrats’ Obamacare tax subsidies is astronomically more than they’ve publicly admitted and plan to account for. Making these ‘temporary’ subsidies permanent would add $248 billion to the federal deficit over the next decade. There would be more individuals who would be forced off of their current plans than individuals who would gain new coverage under this policy. According to CBO and JCT, 2.3 million people would lose their current employer-subsidized coverage, forcing individuals and families off the plans. The effect would be to make more people dependent on government. Even worse, people earning more than $100,000 per year receive billions in taxpayer-funded subsidies.
“Democrats claim to need reconciliation to reduce the deficit and inflation. Instead of proposing real solutions to fix record-high inflation, Democrats are proposing to hide the effects of inflation on Obamacare premiums by subsidizing the wealthy and already-insured. This is a proposal as nonsensical as it is irresponsible. It’s absolutely critical Americans have an accurate accounting of the real harm these proposals would have on our economy.”
To read CBO’s and JCT’s response, click here.
To read the full letter sent by the Senators, click here.