Saturday, January 8, 2011

CBO Report on Savings from Repealing Obamacare...

This is from an email sent by Sandy Davis (of the CBO) to Congressional Hill staffers:
We have been asked to provide the revenue and direct spending components of that total. Extrapolating the estimated budgetary effects of the original health care legislation and accounting for the effects of subsequent legislation, CBO anticipates that enacting H.R. 2 would probably yield, for the 2012-2021 period, a reduction in revenues in the neighborhood of $770 billion and a reduction in outlays in the vicinity of $540 billion, plus or minus the effects of forthcoming technical and economic changes to CBO’s and JCT’s projections.
Translation from bureaucratic-speak: repealing Obamacare will (a) reduce spending by $540 billion, and (b) reduce taxes by $770 billion.

If you've paid attention to the news reports, you might be forgiven for thinking that this analysis is in direct contradiction to an earlier analysis the CBO did, wherein they notoriously said that Obamacare would reduce costs to the government.  But it's actually not a contradiction at all.  In that notorious report, they were “scoring” the Obamacare legislation, at the request of the Democrats.  They were given a set of (demonstrably false) assumptions, and told to compute what the costs of Obamacare would be given those assumptions.  The CBO must do what it is charged with doing; they delivered the requested computation and did not deliver what they weren't asked for: a review of the validity of the assumptions. 

This time they were asked to do something much more concrete: given reality, how much would we save by repealing Obamacare. 

Answer: $1.3 trillion.

1 comment:

  1. Add to that millions more who waited, or thought the policies under ObamaCare were too expensive and decided just to pay the tax penalty.obamacare application form online