Wednesday, July 3, 2013
The delay deprives the federal government of a year of penalties that would have been paid by companies that do not meet the law’s requirements, with as yet unknown budgetary effects. Republicans had warned of a downturn in hiring as a result of the mandate.
The so-called individual mandate is unaffected by the rule change. That provision requires the vast majority of Americans to purchase insurance or pay a penalty, with tax credits provided to those who can’t afford coverage.
Republican former Congressional Budget Office director Douglas Holtz-Eakin called the move “deviously brilliant,” by removing a potential electoral impediment from in front of congressional Democrats before the midterms.
“Democrats no longer face the immediate specter of running against the fallout from a heavy regulatory imposition on employers across the land,” Holtz-Eakin wrote. “Explaining away the mandate was going to be a big political lift; having the White House airbrush it from the landscape is way better.”
Full article: http://swampland.tim … -penalty-until-2015/