During a joint appearance with former president Bill Clinton at a Clinton Global Initiative (GBI) get-together, President Barack Obama admitted that the Affordable Care Act, also known as Obamacare, has led to an increase in costs for certain parts of the economy.
"It's paid for by a combination of things. We did raise taxes on some things," he said during the meeting. He went on to discuss the value received from these "investments," including a crippling tax on medical devices and a tax on premium, so-called "Cadillac" health insurance policies enjoyed by many union members.
It's a sad state of affairs that it took nearly four years since the passage of Obamacare – and a ruling by the U.S. Supreme Court affirming that the individual mandate "penalty" was actually a tax, as argued by Obama administration lawyers – for the president to admit what many have already known. Now the only question is, will Americans fight bank against the blanket of taxes that are heading their way?
The construction of the ACA makes it so that the taxes are slowly but surely layered in. The "Cadillac policy" tax won't kick in until 2018, whereas the employer-mandate penalty won't be effective until 2015. Everyday Americans, however, will be liable for owning coverage starting next year.
During the GBI meeting, the president said this about the tax increases:
"… So the bottom line is, through these various mechanisms, we raised enough money to pay for providing health insurance for those who don't have it, to provide these tax credits in the marketplace, and at the same time, because we're driving down costs, we actually end up saving a little money," Obama commented, according to NewsMax.
What this says about the Obama administration is that empirical evidence – as opposed to anecdotal evidence – is far more important. What no one is questioning is the assertion that costs are being lowered, even though the full effects of the ACA haven't even been felt. Only time will tell just how effective Obamacare really is.
In the meantime, Americans need to learn to fend for themselves financially, especially if they are concerned about their future retirement. Learn more about these risks by exploring our website today!