The latest stimulus Bill significantly increases premium subsidies under the ACA and further limits out of pocket costs … for two years!
The expanded tax credits would increase federal deficits by about $34 billion over 10 years, according to a February analysis by the Congressional Budget Office. The initiative would expand health insurance through the exchanges by 1.7 million people in 2022.
Wall Street Journal
Spending on government programs is projected on a ten year period even though in this case the expense is limited to two years … in theory that is.🧐
Nobody seriously thinks that after two years these new subsidies will be allowed to disappear allowing premiums to jump dramatically.
It’s no doubt intended to be a long-term commitment… once again muddying the health care waters.
Is it necessary to mention that politicians have once again created a long-term obligation and liability without any funding to support it?
Conservative reaction to stimulus spending seems to ignore its stimulative effect, which will result in increased corporate profits and increased tax revenues. Will that work? I suggest watching the stock market, which embodies the collective expectations of us investors. Today, 3/11, it’s up.
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There was no stimulus needed, especially at the cost of more debt and interest costs. The economy already started recovering the 4th quarter 2020, corporate earnings are fine, the market is fine. Government assistance should have been directed at those individuals and small businesses truly in need. This is the biggest political scam since the tax cuts.
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Whether stimulus was needed is irrelevant to estimating what it’s effects will be.
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Whether stimulus was needed is irrelevant to estimating what its effects will be.
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It never occurred to me why the government programs use 10 yr projections until I read the quote above. Treasury debt bench mark is its 10 yr bonds. In other words, whatever the government program expense is, and since it is unfunded, if it ever gets paid off, the 10 year debt would be X.
I always looked at the 10 year cost as the cost of manning a combat ship for 10 years. But the CBO is telling us that the program will cost us $34B in addition to the 2 year program costs.
To me it is like taking 10 years to pay off a 2 year feel good vacation. I would never do it.
And there is no way they are going to put that genie back in the bottle after 2 years with another House election cycle in 2022.
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