Analysts: Health law repeal boosts economy, adds red ink

(AP Photo/Don Ryan, File)

WASHINGTON (AP) – A new nonpartisan government study says that repealing President Barack Obama’s signature health care law would boost the economy even as it increases budget deficits.

The Congressional Budget Office says that completely repealing the law would, on average, increase the economy by 0.7 percent a year when economic effects have had a chance to kick in. That’s mostly because more people would work more to make up for the lack of health care subsidies from the government.

But the budget office adds that repealing the law’s spending cuts and tax increases would add $137 billion to the federal deficit over the coming decade, even as almost $1.7 trillion in coverage costs would disappear.

The Congressional Budget Office does nonpartisan budget analysis for lawmakers.

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