Scott Grannis of Calafia Beach Pundit writes that the Congressional Budget Office has made a huge breakthrough with its calculation that Obamacare will stunt economic growth: "In the world of public policy, the Congressional Budget Office's recent finding that Obamacare will weaken economic growth and reduce future employment is like an earthquake of Magnitude 8. Finally, finally, the CBO has introduced dynamic assumptions into its models of how the economy responds to existing and proposed policies. ...Before, the CBO would assume that a 10% increase in tax rates would translate into a 10% increase in tax revenues.
"Now and forevermore, we hope, they will calculate how much the higher rate is likely to depress economic activity (e.g., higher marginal tax rates are likely to cause a reduction in the tax base that could offset all or part of the increase in tax rates). The CBO now acknowledges that Obamacare will hurt the economy because it creates incentives for people to work less. The phasing out of Obamacare subsidies will act as a new marginal tax on work, and whenever you raise taxes on some activity, you should expect to see less of it..." [Source] BJS
