Despite claiming that he spoke “off the cuff” when he said that a “lack of transparency” was key in fooling ‘stupid Americans’ to accept the passage of Obamacare, a third video has emerged of MIT economics professor Jonathan Gruber in which he admits that the administration exploited Americans’ “lack of economic understanding” to hide the fact that ACA was a direct tax on the customer.
The clip comes from a November 5, 2012 speech at Rhode Island University. In the first part of the video, Gruber laments the fact that Americans do not have to pay tax on health insurance provided by employers.
The MIT professor then explains how under Obamacare, Americans’ “lack of economic understanding” would be exploited so as to make them think that the “evil insurance companies” were the ones being taxed, when in reality the companies simply “pass on higher prices” to the customer.
“I have been making this speech for twelve years and people would come up to me and say, ‘but wait a second you’re going to tax my heath insurance?’ And I’d say no, no, no! We’re going to tax subsidies on your health insurance. And they’d go ‘you’re going to tax my heath insurance?’ And you just can’t get through its politically impossible. So despite the fact we thought we might get this as part of the law it was going to be dead.”
“Until a second Massachusetts hero arose, John Kerry. John Kerry said no-no we’re not going to tax your heath insurance, we’re going to tax those evil insurance companies. We’re going to impose a tax that if they sell health insurance that’s too expensive we’re going to tax them. And conveniently the tax rate will happen to be the marginal tax rate on the income tax code. So basically it’s the same thing – we just tax insurance companies, they pass on higher prices, that offsets the tax break we get into being the same thing. It’s a very clever basic exploitation of the lack of economic understanding of the American voter.”
Gruber’s arrogance in publicly acknowledging that the administration, with whom he helped craft Obamacare after being paid $400,000 dollars, would utilize dirty tricks to hide the fact that ACA was a de facto tax being imposed directly on Americans, is rivaled only by his deception in attempting to explain away his comments.
Even as another video emerged of Gruber asserting that “the American people are too stupid to understand the difference” between a direct tax and a tax on insurance companies, the professor appeared on MSNBC to claim that his remarks were not planned.
In reality, on at least three different occasions Gruber openly stated that the administration sought to deliberately deceive Americans during the promotion of Obamacare, relying on what he termed “the stupidity of the American voter” and a “lack of transparency” to accomplish the feat.