Wednesday, December 23, 2009

Phony numbers from Obama and CBO

Krauthammer's Take [NRO Staff]

On the CBO score of the Senate health-care bill:

That CBO estimate is completely wrong, and when Obama cites it, he is being completely cynical.

Number one, the only reason it ends up with a surplus is because it strips out — well, it assumes that there will be cuts in reimbursements for doctors of 21 percent next year with no increase over a decade. It's 100 percent certain that is not going to happen, but it's in the bill because [there will be] will be a separate provision that will strip it out. So once you calculate that in, you're already in the red.

Secondly, and this is the most important, it supposedly costs $850 billion over ten years. But 98 percent of the costs of the bill are in the last six years. So it's a trick. If you actually look at real charges, you start in 2014 when the benefits kick in and you go out ten years, then the cost is not slightly under $1 trillion. It is $1.8 trillion or $2.5 trillion, which means it will blow an enormous hole in the deficit....

You cook the books by presenting the assumption that the CBO is required to assume will happen — but what everybody understands is not going to happen. That's why the ostensible CBO number looks good. The real number is devastatingly in deficit. …

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