Roskam & Kirk: New Study Shows New Taxes/Provisions of Health Care Bills Could Cost 169,000 IL Jobs

Washington, Nov 23, 2009 -

As the Senate debates its 2,074-page, $849-billion health care bill, U.S. Reps. Peter Roskam and Mark Kirk highlighted a new study detailing the economic consequences of House and Senate health care proposals.  The study, commissioned by the Illinois Policy Institute (IPI), indicates 169,000 Illinois residents may lose their jobs if the new taxes and additional government spending programs are established in the Pelosi-Reid legislation.  The news comes just days after Illinois’ unemployment rate hit 11 percent – the highest since August 1983.

"Democrats promised our unemployment rate would peak at 8%, yet Illinois already is suffering from 11% unemployment, and now Pelosi democrats are trying to push through a massive healthcare overhaul that will only mean further job loss," said Congressman Peter Roskam. "Their healthcare overhaul will considerably raise insurance premiums for working families, cut $500 Billion for seniors in Medicare benefits, add massive taxes to small businesses and job creators, all while adding another weight to our exploding national debt with $1.3 trillion dollars in new spending."

“Since the Stimulus became law, 163,200 Illinois citizens lost their jobs, increasing unemployment from 8.6 percent to 11 percent,” Congressman Kirk said.  “This legislation may eliminate more jobs, caused by ten new taxes, $500 billion in cuts to Medicare and new unfunded Medicaid mandate levied against Illinois. 

“Over the last 10 months, we worked with five dozen patient, doctor and hospital groups who joined with centrist Republicans to craft reforms that would lower costs, expand coverage, protect Medicare, reject tax increases and defend our doctor-patient relationship.  Instead of adopting these common-sense reforms, we are left with legislation that will impose ten new taxes, jeopardizing family incomes and an economic recovery.  We cannot afford to lose an additional 169,000 job losses in the teeth of the Great Recession.”

“Congress’s plan will add insult to injury in Illinois,” said John Tillman, CEO of the Illinois Policy Institute.  “It was bad enough when we knew the freedom to access quality health care was under fire; now our jobs are as well.  Congress should be embracing the proactive, patient-centered reforms proposed by the Illinois Policy Institute.  There is another, better way to health care reform—a way that doesn’t cost jobs, cut off access to quality health care, and stifle the freedom of citizens across the country.” 
Key findings of the IPI study include:

• Due to new taxes and borrowing, the bill may cost 169,000 Illinois jobs over 10 years – a more than 20 percent increase over the current seasonally adjusted unemployment total of 731,800.  Holding the labor force constant, Illinois’ unemployment rate could reach 13.6 percent – a level not seen since the 1930s. Nationwide, new taxes and other provisions of the bill could trigger a loss of 3.9 million more jobs.

• The legislation could cost Illinois families $57.0 billion over 10 years, or $4,418 for each person in the state. 

• The economy may also contract under the new taxes and spending of the health care bills. In the teeth of the Great Recession, U.S. economic growth could decline by 4.9 percent (5.1 percent in Illinois) over the next decade.

• Medical inflation will likely increase by 5.2 percent by 2019 as billions in new government subsidies drive up costs for medical procedures.

• The State of Illinois’ deficit is likely to rise under the legislation, including an additional $6.7 billion through 2019, or $518 for man, woman and child in Illinois.  This includes a new unfunded Medicaid expansion.

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