One of the financial tools that Mr. Obama and his cronies snuck into the PPACA was a new tax, on what they considered to be, “too generous” health insurance plans.
Starting in 2018, employers who offered employees policies with benefits costing over $10,200 for individuals and $27,500 for families must pay a 40% “Cadillac Tax.”
At that time the Congressional Budget Office (CBO) estimated that the new tax would bring in over $137,000,000,000 that could be used to help pay for the new “Subsidies” for the uninsured.
Now that the new health insurance “subsidies” are just a few months away, the CBO has revised their estimates. It appears that many large employers have revised their health insurance plans or done away with them completely. The latest projections indicate that the new “Cadillac Tax” will only produce a little over $80,000,000,000.
The difference is about $57,000,000,000 a year. In order for the government to be as generous as they plan to be with health insurance premium “Subsidies” for the uninsured, that money has to be made up someplace.
If the “Obamacare” experiment survives until 2019, either the government will need to raise taxes, cut another program’s funding or modify the “Subsidy” schedule.