Specter Of Welfare State Jolts Democrats; CBO Hits Election Pitches For Jobs

The White House and congressional Democrats tried to limit the fallout Wednesday from the politically damaging conclusion in a Congressional Budget Office report that the Obamacare entitlement creates a major incentive for some people not to work.

While some critics focused on a finding by the CBO that Obamacare will result in 2.5 million fewer workers over a decade, conservatives said the bigger fundamental issue highlighted in the report is one familiar to the welfare state — that taxpayer-funded government subsidies provide disincentives for full-time work.

“People used to be stuck in jobs because they needed the health insurance,” said Dr. Scott Gottlieb, a practicing physician and a specialist on health care policy at the conservative-leaning American Enterprise Institute. “Now they’re going to be prevented from taking jobs because they need the subsidies.”

The CBO forecast continued to reverberate across Capitol Hill on multiple issues. The nonpartisan budget agency’s prediction that the U.S. jobless rate likely will stay above 6 percent through 2016 was revealed as Senate Democrats were preparing a push for another extension of benefits to the long-term unemployed, raising the prospect that the government will face much higher benefit costs over the coming years.

The Senate is expected to stage a test vote Thursday on extending the long-term jobless benefits.

More