(TRNS) — The CBO predicted today that the Affordable Care Act will reduce participation in the U.S. labor force due to federal subsidies offered to Americans in need of health insurance.
The report noted that some Americans will choose to work less in order to qualify for the subsidies, which are inversely correlated to income.
CBO said that the country’s labor force participation rate, which is currently 63 percent, will shrink to 60.8 percent by the end of 2024. The agency said that the healthcare law will prove to be the biggest cause of people exiting the labor force.
CBO previously estimated that the law would cost about 800,000 jobs.
Click here to read more of the report.
In response, the White House disputed CBO’s prediction that the ACA will lead to massive job-loss.
“Claims that the Affordable Care Act hurts jobs are simply belied by the facts in the CBO report, said White House Press Secretary Jay Carney. “CBO’s findings are not driven by an assumption that ACA will lead employers to eliminate jobs or reduce hours, in fact, the report itself says that there is “no compelling evidence that part-time employment has increased as a result of the ACA.”
In a separate analysis, the CBO estimated that Obamacare will increase the country’s budget deficit by roughly $1.5 trillion over the next decade.
Click here to read more of that report.
Again, Carney said that the opposite is true, and that the ACA will “reduce the deficit by more than $1 trillion over the next two decades.”