by Drew Gonshorowski
The Heritage Foundation
March 05, 2014
In February, the Congressional Budget Office (CBO) released a budget outlook that showed significant changes in the effect of Obamacare on the supply of labor. This led to a furious outcry from Obamacare proponents and critics. However, one additional bit of conversation seemed to get lost in the shuffle: The CBO clearly states that Obamacare will lower aggregate labor compensation by about 1 percent. This 1 percent represents about a $1.016 trillion reduction in labor compensation from 2017 to 2024, according to the Senate Budget Committee. When we attempt to look at this information on an individual basis, it is clear that low-income individuals will be hit the hardest. For lower incomes, Obamacare encourages people to work less, but that choice ultimately comes at a cost: further suppression of upward mobility and less economic flourishing.



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