CBO Report: GDP Going Down & Gov't Debt Will Hit 64 Yr High | Kaiser Health News: Obamacare Tax On Insurers Passed On To State Taxpayers And In Higher Premiums
Today in Washington, D.C. - August 2, 2014
Last week in August was a data heavy one. The Congressional Budget Office (CBO) released their updated forecast of the nation’s fiscal situation over the next decade, and the Bureau of Economic Analysis (BEA) released their advanced estimate of second quarter GDP growth for this year. In addition, problems with Obamacare continue to persist, as many contractors for the Healthcare.gov site will be paid more than their initial estimate.
Government Debt Will Hit A 64-Year High This Fiscal Year. According to the CBO’s updated budget forecast, “federal debt held by the public will reach 74 percent of GDP at the end of this fiscal year—more than twice what it was at the end of 2007 and higher than in any year since 1950.” In addition, interest payments on the debt will total more than $799 billion in 2024. According to the report, “The federal budget deficit for fiscal year 2014 will amount to $506 billion, CBO estimates, roughly $170 billion lower than the shortfall recorded in 2013. At 2.9 percent of gross domestic product (GDP), this year’s deficit will be much smaller than those of recent years (which reached almost 10 percent of GDP in 2009) and slightly below the average of federal deficits over the past 40 years.”
The CBO Predicted GDP Growth Of Only 1.5. Percent In 2014. In February, The CBO projected the economy would grow by 3.1 percent in 2014. However, the agency downgraded the growth rate to 1.5 percent citing “the surprising economic weakness in the first half of the year.” Government Debt Will Hit A 64 Year High, As A Percentage Of GDP. Also noted in the CBO report, “federal debt held by the public will reach 74 percent of GDP at the end of this fiscal year—more than twice what it was at the end of 2007 and higher than in any year since 1950.” Interest Payments On The Debt Will Total $799 Billion In 2024. According to The Wall Street Journal:, “interest payments on the debt will be less than originally forecast, they will reach $799 billion in 2024 alone.”
The Senate and House are still adjourned for the August recess to allow senators to work in their home states. The Senate will return for legislative business on Monday, September 8th. When the Senate returns, votes are scheduled on nominees to the Social Security Advisory Board and on the nomination of Jill Pryor to be a judge on the 11th Circuit Court of Appeals.
The House may adjourn on Friday, September 5, 2014. However, no bills or votes are expected until potentially the following week. House Majority Whip Steve Scalise (R-LA) today announced new additions to his staff for both the Office of the Majority Whip and his personal office. “I’m proud to welcome these new members to my Washington staff,” Scalise said. “All of them bring to the team their unique and varied experiences, dedication to public service, and commitment to representing the values, interests, and people of Southeast Louisiana. They will play an integral role as we work to unite the Republican Conference around conservative solutions that move America forward.”
Moira Bagley Smith, Communications Director: Moira joins the Office of the Majority Whip after most recently serving as Communications Director for U.S. Senator Rand Paul (R-Ky.) She began her career in Washington, D.C. at Roll Call Newspaper before working for the Republican National Committee and subsequently, The Daily Caller. Dan Sadlosky, Policy Advisor: Dan served U.S. Congresswoman Jaime Herrera Beutler (R-Wash.) as a Legislative Assistant.He previously worked for Rep. Scalise as a Legislative Aide.
Kaiser Health News reports today, “When Congress passed the Affordable Care Act, it required health insurers, hospitals, device makers and pharmaceutical companies to share in the cost because they would get a windfall of new, paying customers. But with an $8 billion tax on insurers due Sept. 30 — the first time the new tax is being collected — the industry is getting help from an unlikely source: taxpayers. States and the federal government will spend at least $700 million this year to pay the tax for their Medicaid health plans. The three dozen states that use Medicaid managed care plans will give those insurers more money to cover the new expense. . . . Other insurers are getting some help paying the tax as well. Private insurers are passing the tax onto policyholders in the form of higher premiums. Medicare health plans are getting the tax covered by the federal government via higher reimbursement. . . . ‘This situation results in the federal government taxing itself and taxing state governments to fund the higher Medicaid managed care payments required to fund the ACA health insurer fee,’ said a report by Medicaid Health Plans of America, a trade group.”
So once again despite Democrats’ claims that Obamacare lowers health care costs, a new tax imposed by Obamacare is once again falling on American taxpayers, either through taxes to their states or to the federal government, or through higher health care premiums (which Democrats also said Obamacare would lower).
The report continues, “A KHN survey of some large state Medicaid programs found the tax will be costly this year. . . . Florida anticipates the tax will cost $100 million, with the state picking up $40 million and the federal government, $60 million. Texas estimates the tax at $220 million, with the state paying $90 million and federal government, $130 million. Tennessee anticipates it will owe $160 million, with the state paying $50 million and the federal government, $110 million. California has budgeted $88 million, with the state paying $40 million and the federal government, $48 million. Georgia estimates the tax on its plans at $90 million, with the state paying $29 million and the federal government, $61 million. Pennsylvania predicts the tax will cost $139 million, with the state paying $64 million and the federal government, $75 million. Louisiana estimates the tax will cost $27 million, with the state paying $10 million and the federal government, $17 million. . . . ‘The premium tax is just another way that the costs of the Affordable Care Act are pushed down to states and families,’ said Stephanie Goodman, spokeswoman for the Texas Medicaid program. Medicaid officials in other states complain that paying the tax reduces money they could have spent on covering more services or paying providers. ‘I do not feel I am getting anything in return for this,’ said Tennessee Medicaid Director Darin Gordon.”
As Senate Republican Leader Mitch McConnell told 14 News, in Owensboro, KY, “[Obamacare is] a big burden, both in Medicare reimbursement reductions and taxes on the providers of health care. And of course it’s been a catastrophe for the consumers: higher premiums, higher deductibles, lost jobs. Really a disastrous piece of legislation that we’re paying the price for.”
Tags: CBO Report, GDP Going Down, Government Debt, 64 Yr high, Obamacare, Obamacare Tax, state tax payers, consumers, higher premiums To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. and "Like" Facebook Page - Thanks!
Last week in August was a data heavy one. The Congressional Budget Office (CBO) released their updated forecast of the nation’s fiscal situation over the next decade, and the Bureau of Economic Analysis (BEA) released their advanced estimate of second quarter GDP growth for this year. In addition, problems with Obamacare continue to persist, as many contractors for the Healthcare.gov site will be paid more than their initial estimate.
Government Debt Will Hit A 64-Year High This Fiscal Year. According to the CBO’s updated budget forecast, “federal debt held by the public will reach 74 percent of GDP at the end of this fiscal year—more than twice what it was at the end of 2007 and higher than in any year since 1950.” In addition, interest payments on the debt will total more than $799 billion in 2024. According to the report, “The federal budget deficit for fiscal year 2014 will amount to $506 billion, CBO estimates, roughly $170 billion lower than the shortfall recorded in 2013. At 2.9 percent of gross domestic product (GDP), this year’s deficit will be much smaller than those of recent years (which reached almost 10 percent of GDP in 2009) and slightly below the average of federal deficits over the past 40 years.”
The CBO Predicted GDP Growth Of Only 1.5. Percent In 2014. In February, The CBO projected the economy would grow by 3.1 percent in 2014. However, the agency downgraded the growth rate to 1.5 percent citing “the surprising economic weakness in the first half of the year.” Government Debt Will Hit A 64 Year High, As A Percentage Of GDP. Also noted in the CBO report, “federal debt held by the public will reach 74 percent of GDP at the end of this fiscal year—more than twice what it was at the end of 2007 and higher than in any year since 1950.” Interest Payments On The Debt Will Total $799 Billion In 2024. According to The Wall Street Journal:, “interest payments on the debt will be less than originally forecast, they will reach $799 billion in 2024 alone.”
The Senate and House are still adjourned for the August recess to allow senators to work in their home states. The Senate will return for legislative business on Monday, September 8th. When the Senate returns, votes are scheduled on nominees to the Social Security Advisory Board and on the nomination of Jill Pryor to be a judge on the 11th Circuit Court of Appeals.
The House may adjourn on Friday, September 5, 2014. However, no bills or votes are expected until potentially the following week. House Majority Whip Steve Scalise (R-LA) today announced new additions to his staff for both the Office of the Majority Whip and his personal office. “I’m proud to welcome these new members to my Washington staff,” Scalise said. “All of them bring to the team their unique and varied experiences, dedication to public service, and commitment to representing the values, interests, and people of Southeast Louisiana. They will play an integral role as we work to unite the Republican Conference around conservative solutions that move America forward.”
Moira Bagley Smith, Communications Director: Moira joins the Office of the Majority Whip after most recently serving as Communications Director for U.S. Senator Rand Paul (R-Ky.) She began her career in Washington, D.C. at Roll Call Newspaper before working for the Republican National Committee and subsequently, The Daily Caller. Dan Sadlosky, Policy Advisor: Dan served U.S. Congresswoman Jaime Herrera Beutler (R-Wash.) as a Legislative Assistant.He previously worked for Rep. Scalise as a Legislative Aide.
Kaiser Health News reports today, “When Congress passed the Affordable Care Act, it required health insurers, hospitals, device makers and pharmaceutical companies to share in the cost because they would get a windfall of new, paying customers. But with an $8 billion tax on insurers due Sept. 30 — the first time the new tax is being collected — the industry is getting help from an unlikely source: taxpayers. States and the federal government will spend at least $700 million this year to pay the tax for their Medicaid health plans. The three dozen states that use Medicaid managed care plans will give those insurers more money to cover the new expense. . . . Other insurers are getting some help paying the tax as well. Private insurers are passing the tax onto policyholders in the form of higher premiums. Medicare health plans are getting the tax covered by the federal government via higher reimbursement. . . . ‘This situation results in the federal government taxing itself and taxing state governments to fund the higher Medicaid managed care payments required to fund the ACA health insurer fee,’ said a report by Medicaid Health Plans of America, a trade group.”
So once again despite Democrats’ claims that Obamacare lowers health care costs, a new tax imposed by Obamacare is once again falling on American taxpayers, either through taxes to their states or to the federal government, or through higher health care premiums (which Democrats also said Obamacare would lower).
The report continues, “A KHN survey of some large state Medicaid programs found the tax will be costly this year. . . . Florida anticipates the tax will cost $100 million, with the state picking up $40 million and the federal government, $60 million. Texas estimates the tax at $220 million, with the state paying $90 million and federal government, $130 million. Tennessee anticipates it will owe $160 million, with the state paying $50 million and the federal government, $110 million. California has budgeted $88 million, with the state paying $40 million and the federal government, $48 million. Georgia estimates the tax on its plans at $90 million, with the state paying $29 million and the federal government, $61 million. Pennsylvania predicts the tax will cost $139 million, with the state paying $64 million and the federal government, $75 million. Louisiana estimates the tax will cost $27 million, with the state paying $10 million and the federal government, $17 million. . . . ‘The premium tax is just another way that the costs of the Affordable Care Act are pushed down to states and families,’ said Stephanie Goodman, spokeswoman for the Texas Medicaid program. Medicaid officials in other states complain that paying the tax reduces money they could have spent on covering more services or paying providers. ‘I do not feel I am getting anything in return for this,’ said Tennessee Medicaid Director Darin Gordon.”
As Senate Republican Leader Mitch McConnell told 14 News, in Owensboro, KY, “[Obamacare is] a big burden, both in Medicare reimbursement reductions and taxes on the providers of health care. And of course it’s been a catastrophe for the consumers: higher premiums, higher deductibles, lost jobs. Really a disastrous piece of legislation that we’re paying the price for.”
Tags: CBO Report, GDP Going Down, Government Debt, 64 Yr high, Obamacare, Obamacare Tax, state tax payers, consumers, higher premiums To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. and "Like" Facebook Page - Thanks!
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