Sunday, March 21, 2010

HealthCare Bill to Increase Federal Deficient by $562 Billion

It is important to start out by saying that these 10 year predictions are almost always wrong, and usually end up costing more then was originally thought. That said, the projections should be 'gimmick free'. The $700 billion swing from $138 billion deficit reduction to $562 billion increase deficit is not the CBOs 'fault'. They are required to calculate the bill as written even if it is not likely or possible at all.

"How can the budget office give a green light to a bill that commits the federal government to spending nearly $1 trillion more over the next 10 years?

The answer, unfortunately, is that the budget office is required to take written legislation at face value and not second-guess the plausibility of what it is handed. So fantasy in, fantasy out.

In reality, if you strip out all the gimmicks and budgetary games and rework the calculus, a wholly different picture emerges: The health care reform legislation would raise, not lower, federal deficits, by $562 billion.

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