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Friday, January 07, 2011

CBO Admits That Repealing Obamacare Would Reduce Net Spending By $540 Billion

Well Well Well, all morning I have seen the left try to highlight a portion of the latest CBO report which stated that repealing Obamcare would increase the deficit by $230 billion through 2021.

A new more detailed report is due to be released over at the CBO's Director's Blog which will clarify a few things.

A letter from the Congressional Budget Office's Associate Director for Legislative Affairs, Edward "Sandy" Davis, shows that repealing the national health care law would actually reduce net spending by $540 billion in the ten year period from 2012 through 2021. Also that the $230 billion increase in the deficit would be the result from taxes not being raised on Americans.

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.

CBO will post a Director’s blog with this information on the CBO website shortly. Please let me know if you have any questions.

In other words, the $230 billion difference would be monies saved the tax payer because the $770 billion would have been from TAXES levied against Americans.

Democrats solid solution to their overspending is always to tax Americans to pay for it. Then when they cannot raise taxes they accuse the Republicans of raising the deficit?

In the eyes of the left revenues equals taxes.

Ask yourself, how the CBO could assume paying a debt with taxes not even collected yet, then turn around and say by not collecting those taxes, would increase the deficit?

AmSpec explains:

The Congressional Budget Office, in an email to Capitol Hill staffers obtained by the Spectator, has said that repealing the national health care law would reduce net spending by $540 billion in the ten year period from 2012 through 2021. That number represents the cost of the new provisions, minus Medicare cuts. Repealing the bill would also eliminate $770 billion in taxes. It's the tax hikes in the health care law (along with the Medicare cuts) which accounts for the $230 billion in deficit reduction.

'Nuff said.