Martin Heinrich: “I thank the Senator for the question because I think this is incredibly important. The CBO estimated that the ACA would…”

“I thank the Senator for the question because I think this is incredibly important. The CBO estimated that the ACA would generate $93 billion over 10 years with this tax, but when you drill down on that, only one-quarter of that--about $23 billion--actually comes from excise tax receipts themselves. The remaining three-quarters comes from revenue that would be theoretically generated from increases in taxable wages that some economists expected would be coupled with reductions in health care benefits. In other words, all the money you are saving, you are going to pass on to the employees in the form of a raise. We simply know that is not what happens in the real world. In fact, employer surveys over the past few years have conclusively pointed to one unifying fact, that at best employers will not raise wages for their workers to compensate for downgrading of employee health insurance benefits. In fact, a recent American Health Policy Institute study found that three-quarters of employers said that they would not raise wages in order to make up for less comprehensive health insurance plans. I say to Senator Heller, I know we are being joined by the leader here, and I am going to have to run to another event in a few minutes, but I want to ask you if you would maybe consider a quick wrapup.…”