Affordable Care Act Over the Essay

To make matters worse the stagnant economy means that more people are requiring assistance. In most cases, different demographics of consumers are unable to afford health care coverage. This is because of the abusive practices that are used by the insurance industry to maximize their profit margins (i.e. The denial of preexisting conditions). To make matters worse insurance premiums are increasing exponentially in order to keep up with rising costs.

The Affordable Care Act is designed to address these abuses and ensure that the public has the support they need in this area. This is following the basic model of having the federal government establish and regulate the marketplace. While at the same time, the individual must share their responsibility for these costs. This is taking a neutral perspective when dealing with these problems.

However, given the current fiscal challenges facing the federal government; means that there will be added pressures to reduce spending in these areas. This is because Medicare and Medicaid are accounting for two of the largest segments of the budget. If there was a decrease in funding, it is believed that this will force everyone to have greater amounts of personal responsibility.

To pay for this and other programs, the President believes that the wealthy should be taxed at higher marginal rates. Moreover, he thinks that there must be responsible cuts which will not hurt the services everyone is receiving. Based upon the research that was conducted, it is clear that the White House will prevail in these areas. The reasons why are, they have greater political cover (against a government shutdown) and Obama was clearly reelected. (Rosenberg, 2012)

These two factors mean that the President will use this as leverage to eliminate tax loopholes and impose higher marginal rates on the wealthy. Republicans will try to challenge him up to the last moment. It is at this point when they will be forced to meet these requirements or lose influence during the process. (Rosenberg, 2012)

The way that these issues will impact the nation is they will lead to drastic changes in the tax code. This is when there will be fewer deductions and other streams of income for the federal government. At the same time, the different agencies and Congress will have to control their spending. This means that entitlement programs will be reformed to reduce waste and impose greater levels of transparency. (Rosenberg, 2012)

For the economy, these kinds of adjustments will create an environment of slower growth over the short-term. This is because businesses and the general public are adapting with these changes. However, during the course of several years, these shifts will reduce the deficit and help to place the country on a path towards fiscal responsibility. The Affordable Care Act and tax issues are part of how these challenges will be resolved. This is from both areas being interconnected. If the President is successful, these transformations will place the nation in firm control of its financial future.

References

The Affordable Care Act. (2013). Health Care.gov. Retrieved from: http://www.healthcare.gov/law/full/index.html

Facebook Paid No Income Taxes in 2012. (2013). Press TV. Retrieved from: http://www.presstv.ir/usdetail/289329.html

Federal Debt Ceiling. (2012). New York Times. Retrieved from: http://topics.nytimes.com/topics/reference/timestopics/subjects/n/national_debt_us/index.html

Number of Uninsured. (2012). Kaiser Foundation. Retrieved from: http://www.kaiserhealthnews.org/daily-reports/2012/september/13/census-numbers.aspx

Obama Care Adds Trillions. (2012). Politico. Retrieved from: http://www.politifact.com/truth-o-meter/statements/2012/jun/28/mitt-romney/mitt-romney-says-obamacare-adds-trillions-deficit/

Klein, E. (2013). Simpson Bowles. Politics in Minnesota. Retrieved from: http://politicsinminnesota.com/2013/02/ezra-klein-simpson-bowles-2-0-trades-credibility-for-influence/

Rosenberg, E. (2012). Six Tax Issue to Watch. Market Watch. Retrieved from: http://articles.marketwatch.com/2012-12-06/finance/35636905_1_deductions-amt-alternative-minimum-tax