The head of the Congressional Budget Office Douglas Elmendorf testified on Capitol Hill today, making headlines by saying that ObamaCare subsidies "create a disincentive" for people to find work.

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The testimony comes a day after an explosive CBO report that predicted the new health care law will cost the equivalent of 2.3 million jobs by 2021. The nonpartisan CBO points out that smaller businesses will look for less full-time workers to avoid the cost of providing health insurance.

The White House has put a different spin on it though, saying Americans will now be free to pursue different careers, since they won't have to worry about health insurance.

Doug Holtz-Eakin, who was head of the CBO from 2003 to 2005, gave us his analysis on Happening Now. Essentially, he says the CBO believes that the Affordable Care Act is going to make it more profitable for companies not to hire.

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Holtz-Eakin then outlined the major point that Americans should understand about the new numbers.

"[The report] is making a very important point about tax policy. Essentially when these workers attempt to move up and lose benefits, they're being taxed for their success. What the CBO is saying is 'these taxes matter.' We've heard an administration say again and again 'you can tax the rich, you can tax people, it doesn't affect anything.' This is a report that powerfully says it affects the incentive to work, it affects the economic growth. That's the story people need to understand," he said.

Watch the full discussion above, and White House Press Secretary Jay Carney's response to the report below.