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August 24, 2020 | 2 Minute Read

This is a part of a series called the Five Minute Answer segment about the impact of the Affordable Care Act’s tax credits on small businesses.

To see an infographic from Vox, click here.

The ACA’s tax credits are an attempt to cover nearly 1 million people, even during a year of low inflation. They’re designed to boost productivity, encourage people to become businesses before they are taxed.

According to the Congressional Budget Office, those benefits increased 5.5 percent between 2010 and 2014, and now account for 18 percent of all business tax credits.

There’s also a lot left to do.

As Business Week reported on April 19, the ACA’s tax credits increased the tax rate by 15 percent, a significant increase over previous tax credits that cost about 2 million.

That’s because new business regulations have not helped at all. This was not because President Obama made the decision to let businesses get away with something much more complicated, the health insurance law said. It was because his administration delayed the approval of the most recent regulations. This included the Obamacare provision requiring companies to cover people who are over age 60. This was the most controversial of all the regulations Obama had in place.

As the Business Week report pointed out, the cost of providing coverage for the new health reforms was likely to last at least one more year, and the number of new people will be higher.

The CBO’s analysis looked at 12 new forms of federal government subsidies under the ACA, including, of course, Medicare. More importantly, it looked at all the new forms and the changes made to those subsidies.

In short, the CBO looked at about 1 million more businesses and they did not include those businesses that would lose their current subsidies. They also excluded them that would lose the changes proposed for their existing subsidies.

This analysis has two other important flaws. First off, the report goes on to show that the ACA’s small size also leads to a larger tax burden for a large business. But it would not have helped in the short run because there were fewer businesses to receive new subsidies for each new law passed.

The second part of the report, however, is really about how the tax credits worked. Because the ACA tax credits increased the economy, the CBO’s analysis estimates that there would be an additional 8 trillion in savings under the ACA. That’s what the CBO has estimated by adding in the additional trillions of dollars.

To be sure, the CBO

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