Thursday, May 02, 2013

Fox Butterfield on the ObamaTax

The Wall Street Journal's James Taranto has a regular feature wherein he uses the "Fox Butterfield Effect" to demonstrate the mind-boggling density of folks who consistently confuse cause with effect ("the prisons are full, despite a decreasing crime rate").

Here's a mild example directly related to the train-wreck:

"Employer spending on benefits rose at the slowest pace on record in the first quarter, as companies began bracing for higher health costs with next year's launch of [the ObamaTax]."

The folks at IBD do get it right when they note that many "modest-wage" employers will be among the hardest hit. Of course, it's their employees who will be the worse for wear, since they'll be forced to buy insurance (often unsubsidized) at rates that are far higher than even today.

And it's getting worse:

"Total benefits in service occupations shrank 0.3% in Q1, the first decline in data going back to 2002."

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