ObamaCare: Will Not Add a Dime to the Deficit (Wink Wink)

Remember the many times Barack Obama, talking about ObamaCare, told us: “I will not sign a plan that adds one dime to the deficits either now or in the future?” The estimates for the new cost of the program taxpayers is between $340 BILLION and $527 BILLION – and this administration isn’t ‘done yet.’ See a video below with Greta Van Susteren.

Fox News:

VAN SUSTEREN: OK, so why do you say that this adds to the budget — adds to our deficit and the president says the opposite? Where’s the difference?

BLAHOUS: Well, first of all, why it adds to the deficit is simply because the new costs in the legislation add up to a lot more than the cost savings. So there are a lot of new spending commitments in the legislation — subsidized health care coverage for 30 million people, an extension of Medicare solvency for another eight years. All those things cost money and there’s not enough cost saving in the law to pay for all of that.

The reason that many people don’t understand this is because they refer to common scorekeeping conventions of the federal government which obscure these effects. They basically ignore some of the extra financing commitments made under the law and create the, I’m afraid, misimpression that it actually reduces the deficit.

CSMonitor:

In a new study, Chuck Blahous, who is a public trustee for Medicare and Social Security, concludes that the 2010 health law will add at least $340 billion to the federal deficit from 2012-2021. This is contrary to the official estimates by theCongressional Budget Office, which initially figured the Affordable Care Act would reduce the deficit by about $132 billion from 2012-2019.

In this case, there are few who believe the CBO estimate is correct. The CBO works from the information given them by Congress and the Executive Branch and can do no theorizing on their own. For instance, they may know that a particular fact of the plan will boost the deficit, but if the information isn’t officially given to the CBO, they are not allowed to consider it.

Chuck makes some important points in his analysis. One, which TaxVox has written about recently as well, is the potential double-counting of increased Medicare payroll taxes.  The 2010 law raises the Medicare levy by 0.9 percent for high-income workers. But, due to CBO scoring conventions, the money it generates appears to both make the Medicare Hospital Insurance (HI) Trust Fund appear more solvent and reduce the general fund deficit.

It can’t simultaneously do both, as Chuck correctly notes. In reality, if the extra tax goes to the general fund to “pay for” health reform, Medicare would be required to reduce its hospital benefits, absent some other new funding source. Chuck argues Medicare would cut benefits. CBO assumes it would not.

Washington Post on the study discussed above:

President Obama’s landmark health-care initiative, long touted as a means to control costs, will actually add more than $340 billion to the nation’s budget woes over the next decade, according to a new study by a Republican member of the board that oversees Medicare financing.

The study is set to be released Tuesday by Charles Blahous, a conservative policy analyst whom Obama approved in 2010 as the GOP trustee for Medicare and Social Security. His analysis challenges the conventional wisdom that the health-care law, which calls for an expensive expansion of coverage for the uninsured beginning in 2014, will nonetheless reduce deficits by raising taxes and cutting payments to Medicare providers.

Remember that $500 BILLION has already been cut from Medicare to pay for those who have no insurance now. The Independent Payment Advisory Board (IPAB) will be tasked with cutting Medicare services to, at least, the $500 BILLION marker.

Remember his promise America, which only you, who voted for him, or actually believe you deserve the equivalent of free health care on the backs of everyone of your descendants, didn’t give a hoot that the legislation was never read, never understood – and had to buy with kickbacks to get it passed- remember The Won’s promise. His character is the same as yours today if you still support the disaster that is ObamaCare.

If the video disappears or will not play, view it at Fox News.

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