if more employers purchased coverage through the exchanges than we anticipate and purchased somewhat less expensive insurance via the public plan, the principal effect on federal deficits is that those employers would end up increasing their workers’ taxable compensation and thereby would generate slightly higher tax revenues.This is in addition to reducing the cost of insurance for individuals, reducing the cost of employer provided insurance for small businesses, and reducing the amount in subsidies the government will give to individuals help to buy insurance.
The public option would not cost the federal government money. It would, in fact, save the government money and increase revenue from taxes.
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