Sunday, July 26, 2009

CBO: Public Plan Would Increase Tax Revenue and Workers' Wages

A new report [PDF] from the Congressional Budget Office shows that a strong public plan would increase the federal government's tax revenue and wages for some workers. The CBO concludes:

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.

Source: The Walker Report

I still want the CBO to run the numbers for Single Payer...

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