Just How Exactly Did Jonathan Gruber Lie to the American Public and Why It Means at the Start of 2018 Higher Taxes on Health Insurance for 170 Million Americans?

By now everyone knows that White House adviser Jonathan Gruber said that the American public is stupid and that they needed to be lied to about Obamacare. So just what exactly was Gruber  referencing that he claimed the Obamacare care crew were lying about in Obamacare?

Tevi Troy is the president of the American Health Policy Institute and a former deputy secretary of Health and Human Services. In an op-ed at WSJ he tells us:

As Mr. Gruber put it, speaking last year at a conference at the University of Pennsylvania: “Lack of transparency is a huge political advantage. And basically, you know, call it the stupidity of the American voter or whatever, but basically that was really, really critical to getting the thing to pass.”

One example cited by Mr. Gruber is the so-called Cadillac tax, as the ObamaCare excise tax on high-value employer health plans is known. The tax, which he helped devise and will take effect in 2018, imposes a 40% levy on individual health plans worth more than $10,200, and on family plans worth more than $27,500. As Mr. Gruber’s remarks were unearthed last week, economist Mark Wilson and I released a study of the excise tax that shows he is right about its deceptive design. The tax is likely to hit many people who don’t have high-end coverage.

Mr. Gruber says in one video that his real aim was to reduce the tax break available to those who get employer-sponsored insurance, about 170 million Americans. He lamented that it would be hard to persuade Congress to reduce people’s tax breaks: “You just can’t get through. It’s politically impossible.” True enough—the excise tax does the job instead. It is a stealthy way to reduce the tax preference for health care without taking it away from employers.

Mr. Gruber also noted that the real impact of the tax would fall on individual Americans: “We just tax the insurance companies, they pass on higher prices that offsets the tax break we get, it ends up being the same thing. It’s a very clever, you know, basic exploitation of the lack of economic understanding of the American voter.” In another video that surfaced on Friday, he explained that the only way to get rid of the tax preference for employer-sponsored insurance was “by mislabeling it, calling it a tax on insurance plans rather than a tax on people, when we all know it’s a tax on people who hold those insurance plans.”