Is ObamaCare the Largest Tax Increase in History?
Ezra Klein says it’s only the 10th largest tax increase and backs it up with this chart, constructed by Austin Frakt, via Kevin Drum. Chris Jacobs, however, cries foul:
Go back to the chart Klein uses to make his point. That chart assumes the law raises taxes by “only” about 0.5% of GDP. But if you use CBO’s longer-term estimate of 1.2% of GDP, then ObamaCare’s tax increases are outmatched only by revenue measures enacted during the Korean war — several of which were temporary in nature. That would make ObamaCare the largest tax increase in modern history; the largest peacetime tax increase in history; and the largest permanent tax increase in history.
Using the official CBO score, the PPACA may actually reduce the deficit. However, considering all the implications, I believe the PPACA is a major tax increase. For example, the cuts to Medicare physician payments will likely not occur. That adds $523 billion to the 10-year cost. The Medicare pilot projects will likely not save money. That adds more to the cost. The number of people who will seek coverage in the state health insurance exchanges will likely be far higher than predicted, that will also run up the cost.
Good post. Thanks for sharing this.
An enormous tax increase regardless.
What is your alternative, Mr. Jacobs?