The Obamacare taxing starts now and CBO assumed 10 years of taxing. The benefits are costed out for only 6 years because they start in 4 years. Corporations need to have "write offs" once they realize they have an obligation. Part of what we are seeing from Caterpillar, John Deere, AT&T, and other large companies is the write off because they owe more taxes. That is, much of the corporate write offs are tax revenue that transfer from the corporations into the US Treasury.
I am wondering what impact this will have on overall 1Q2010 earnings and the price of stocks.
What the CBO estimate does not include is the additional cost of having a not-for-profit government administer health care instead of a for-profit free market. We currently pay about 16% of our GDP in health care. Socialist countries, like Sweden, Germany and Switzerland, pay about 20% of their GDP. If we follow that path, then that $940B price issued by the CBO really becomes about $1.15T, and probably much, much higher.
Most of the newly insured under Obamacare will be added to the Medicaid rolls—about 15 million of them. What is not included in the CBO costs are the costs the states incur for Medicaid. They pay about half of the costs for Medicaid.
The Obamacare taxing starts now..........
And when comes time to expend the monies collected in the near term, the monies will mysteriously have disappeared, so taxes will be raised to make up the shortfall.
Lend me a nickle for hamburger today