The Con­gres­sion­al Bud­get Office has released a report pre­dict­ing that the sub­si­dies now allowed for indi­vid­ual health poli­cies will cre­ate a “dis­in­cen­tive for peo­ple to work” because the sub­si­dies taper off as they earn more.  So while some have decried the incip­i­ent prac­tice of employ­ers cut­ting their employ­ees to below 30 hours to avoid the man­date, the CBO is say­ing many employ­ees will will­ing­ly cut back because it is in their eco­nom­ic inter­est to do so.  Paul Ryan, the Bud­get Com­mit­tee Chair, said he is trou­bled because “to begin work­ing, get­ting the dig­ni­ty of work, get­ting more oppor­tu­ni­ties, rais­ing their income, join­ing the mid­dle class – this means few­er peo­ple will do that”  He also not­ed that with Baby Boomers retir­ing in large num­bers this dis­in­cen­tive to work will have “jaw drop­ping impli­ca­tions for the econ­o­my and debt reduc­tion”  The CBO Direc­tor said the Afford­able Care Act “will reduce the total num­ber of hours worked in the econ­o­my by between one and a half and two per­cent from 2017 to 2024”

In response the White House said such reduc­tions were not real­ly a prob­lem.  Chair­man of the Coun­cil of Eco­nom­ic Advi­sors Jason Fur­man said Oba­maCare allows greater choice for work­ers to scale back their hours to spend more time with their chil­dren, or to leave their jobs to launch a small busi­ness or start­up  “This is not busi­ness­es cut­ting back on jobs.  This is peo­ple hav­ing new choices”