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Health Care Law=Job Killer: Some Economists Support House GOP

Edward Prescott, 2004 Nobel Laureate in Economics.

hide captionEdward Prescott, 2004 Nobel Laureate in Economics.

Giuseppe Aresu/AP

House Republicans begin their push to repeal the health care law Tuesday, nearly a week later than planned because of the change in plans caused by the Tucson mass shootings.

One of their arguments for repealing the law as a burden on the economy was seriously dinged earlier this month when the Congressional Budget Office reported that repealing the law would actually cause deficits to rise. That was because the new law contained taxes and spending cuts.

To beat back the CBO report and buttress their case that the health care law is a "job killer," House Republicans now have a letter signed by a number of economists and policy experts, a number of whom have worked in Republican administrations or on the GOP side in Congress.

Among the signers are former CBO directors June O'Neill and Douglas Holtz-Eakin and Edward Prescott, a Nobel laureate and Federal Reserve economist.

An excerpt of the letter:

The Patient Protection and Affordable Care Act contains expensive mandates and penalties that create major barriers to stronger job growth. The mandates will compete for the scarce business resources used for hiring and firm expansion. The law also levies roughly $500 billion in new taxes that will enter the supply chain for medical services, raising the cost of medical services. At the same time that businesses juggle the potential for higher interest rates or higher taxes, these medical costs will translate to higher insurance premiums, further increasing the cost of operating a business in the United States.

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