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The health care reform legislation would RAISE, not lower, federal deficits, by $562 billion???

According to the Former Director of the CBO~ 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.
Gimmick No. 1 : The bill front-loads revenues and backloads spending. That is, the taxes and fees it calls for are set to begin immediately, but its new subsidies would be deferred so that the first 10 years of revenue would be used to pay for only 6 years of spending.
Gimmick No2: To operate the new programs over the first 10 years, future Congresses would need to vote for $114 billion in additional annual spending. But this so-called discretionary spending is excluded from the Congressional Budget Office’s tabulation.

Answer Question
 
grlygrlz2

Asked by grlygrlz2 at 12:28 PM on Mar. 21, 2010 in Politics & Current Events

Level 39 (106,530 Credits)
Answers (11)
  • Gimmick No 3: The fate of the $70 billion in premiums expected to be raised in the first 10 years for the legislation’s new long-term health care insurance program. This money is counted as deficit reduction, but the benefits it is intended to finance are assumed not to materialize in the first 10 years, so they appear nowhere in the cost of the legislation.

    grlygrlz2

    Answer by grlygrlz2 at 12:29 PM on Mar. 21, 2010

  • In addition to this accounting sleight of hand, the legislation would blithely rob Peter to pay Paul. For example, it would use $53 billion in anticipated higher Social Security taxes to offset health care spending. Social Security revenues are expected to rise as employers shift from paying for health insurance to paying higher wages. But if workers have higher wages, they will also qualify for increased Social Security benefits when they retire. So the extra money raised from payroll taxes is already spoken for. (Indeed, it is unlikely to be enough to keep Social Security solvent.) It cannot be used for lowering the deficit.


     

    grlygrlz2

    Answer by grlygrlz2 at 12:30 PM on Mar. 21, 2010

  • Finally, in perhaps the most amazing bit of unrealistic accounting, the legislation proposes to trim $463 billion from Medicare spending and use it to finance insurance subsidies. But Medicare is already bleeding red ink, and the health care bill has no reforms that would enable the program to operate more cheaply in the future. Instead, Congress is likely to continue to regularly override scheduled cuts in payments to Medicare doctors and other providers.
    grlygrlz2

    Answer by grlygrlz2 at 12:31 PM on Mar. 21, 2010

  • They wont answer this grly...as I just pointed out in another Q (the one calling all people at tea parties racist) they only respond to the blatantly sensational. These question that provide facts and direct links to the actual bill get completely IGNORED every time! Its a shame and I truly hope these women do not show the majority of the left.....I was giving them more credit than this......

    momof030404

    Answer by momof030404 at 12:36 PM on Mar. 21, 2010

  • Specifically, what about the bill makes this accpetable for you? Simply and ignorantly because it has been done before? Isn't that why our nation is in SO MUCH debt to begin with? Is this the 'change' you want for your children? A nation strapped with historcially mounting debt?
    grlygrlz2

    Answer by grlygrlz2 at 12:36 PM on Mar. 21, 2010

  • I know. momof.. But I would love to get an actual opinion that is based on facts and not emotion... Makes me wonder where IS the logic and rational thinking of the "left"
    grlygrlz2

    Answer by grlygrlz2 at 12:37 PM on Mar. 21, 2010

  • Anyone watching C-Span today?

    Every one has to have insurance. This way health people, people with pre-existing conditions and sick people can all have insurane. With everyone having insurance, the rates will even out. Legislation says americans will only have to pay 10% of their income toward insurance. With us making $70k a year, we would only have to pay $583 a month for insurance. That's a bargain!!! Also it would cover pre-existing conditions! That's big!

    I also like that we are FINALLY spending money on US! Not all of us wanted to spend that much money on the war for the last 7 years, but we sucked it up and supported our troops. Now, now we have someone interested in fixing us!

    Anonymous

    Answer by Anonymous at 1:05 PM on Mar. 21, 2010

  • Anon~This isn't fixing us. Making 70,000 do you have employer sponsired health insurance? What happens if your employer drops you because it is cheaper and the government 'pool' is less coverage and limited Dr's?
    What happens when Dr's stop taking Medicaid patients as the Government continues to EXPAND Medicaid?
    What happens when our government can no longer afford to run these prgrams because the revenue isn't there to sustain them?
    grlygrlz2

    Answer by grlygrlz2 at 1:08 PM on Mar. 21, 2010

  • Yes, my employer does offer health insurance. It's $1000 a month with a $4000 deductable. And that doesn't cover labor and delivery, so on top of that, I have to pay $16000 for my c-section. Change is scary. There are a lot of what-ifs. Maybe that's what went on when they started Social Security too? Or the first time they started Medicaid? When they allowed woman to vote? Every war we fought? Most of these changes won't go into affect until 2014, thats a lot of time to prepare.
    Anonymous

    Answer by Anonymous at 1:25 PM on Mar. 21, 2010

  • Maybe that's what went on when they started Social Security too?


    You do know SS is broke? Medicaid as well. They are hemoraghing money.. Our generation may not even get to draw SS. Our kids thus far is a big no.  How is this good for the nation? What happens when we continue to have increasing numbers of LESS revenue (research IRS over the last 20 years) vs overall government expense. It's simple economics. Why don't you get it? Is it because you are thinking with emotion? Don't have time to be bothered with the logic of how this gets paid for? Or how it impacts our childrens future?

    grlygrlz2

    Answer by grlygrlz2 at 1:31 PM on Mar. 21, 2010

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