Thursday, July 30, 2009

CBO: ObamaCare Bends Cost Curve $820B - In Wrong Direction

HotAir has the details here.

For more background, see previous HotAir post here.

Basically, if you look at this chart of the CBO's numbers and add up all the additional federal health spending for the next 10 years, it adds up to $820 Billion (after subtracting $219 Billion in Medicare cuts). Unrelated tax increases of $581 Billion during those 10 years may mean the federal deficit will only go up by $239 Billion, but it doesn't mean that doesn't mean that ObamaCare is almost deficit neutral. It means that he is going to jack up taxes on "the rich" in order to pay for a massively expensive expansion of federal health care spending. Instead of bending the cost curve down, Obama is bending it up. The CBO numbers clearly show that federal health spending will accelerate over time. And that is assuming the CBO is right, and not undershooting the eventual costs by a factor of 7 like happened with Medicare.

The chart is originally from Keith Hennessey.

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