Tuesday, February 23, 2010

Economics 101

An unexpected thing happened on the way to the health care summit. President Obama forgot to send his bill to the Congressional Budget Office (CBO) for scoring. According to the President his bill comes in (miraculously) just under $1Trillion.

Try closer to $3 Trillion.

Former CBO Director Douglas Holtz-Eakin takes issue with the $1Trillion price tag claiming the President's bill is similar to the House and Senate bills (though more generous) and they scored out around $3Trillion. Additionally he denies the President's soon to be released claim that the deficit will be reduced this year.

According to The Washington Examiner: "Holtz-Eakin said that said the Obama administration wrongly assumes it will receive $640 billion in revenue from the creation of a cap-and-trade system for polluters, which would rely on the passage of an energy reform bill that many Democrats oppose, plus another $200 billion from a controversial proposal to tax international businesses. The Obama administration is also counting on the idea that health care reform will not increase the deficit, which some believe is impossible."

By the way, for those who are economically challenged, the $640 in "revenue" means $640 billion dollars squeezed from an already overtaxed minority of Americans. Taxes in government speak is "revenue."

Deception. Empty Words.

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