Garbage-in-Garbage Out: CBO Scores Reid Bill

On November 18 Senate Majority Leader Reid received preliminary estimates (also called “score”) from the Congressional Budget Office for his 2,000 page package of new Health Care bureaucracies, taxes, subsidies, and mandates.  It began with an estimated…

…net reduction in federal deficits of $130 billion over the 2010-2019 period.

Reid ran to the cameras to claim success.   People who are trusting and don’t have time to analyze CBO fine print were led to believe clever politicians had achieved a miracle.  The government would expand health care benefits for everyone, cover millions of uninsured and save money!


But there was no miracle.  The Reid bill is packed with budgetary gimmicks, and is designed not to provide better medical services to The People, but to cobble together 60 Senate votes, in part buy producing a fraudulent deficit reduction estimate from the CBO.

One of the gimmicks was to schedule tax increases and spending cuts for the first four years, while phasing in the parts that will cost money over the remaining six years.  As written the bill includes tax increases that begin immediately, and reductions in federal expenditures for health care, mostly cuts in Medicare, also beginning immediately.

Then, starting in 2013, a sharp increase in spending on new bureaucracies and subsidies offsets the Medicare cuts and eventually catches up with increasing revenue from a combination of tax increases and fines paid by businesses and individuals who don’t comply with government health insurance edicts.

Thus as written, over ten years, the bill appears to spend less than it generates in revenue from new taxes and fines.  Reid’s deception worked.  He got his positive score from CBO.

The Medicare cuts written into the legislation are so deep they would result in a stampede of senior citizens away from the Democrats in future elections.  Thus, nobody in Washington believes the cuts will happen.  Indeed, there are separate bills pending in both the House and Senate that when passed will nullify the Medicare cuts. But CBO had to count the Medicare cuts because they were part of the written legislative package Reid gave submitted.

Every Senator understands this is all pure deception.  But they hope the voters back home will fall for it.

In our next article we’ll expose more budgetary gimmicks in the Reid bill.

1 Comment so far

  1. uberVU - social comments on November 21st, 2009

    Social comments and analytics for this post…

    This post was mentioned on Twitter by boomerjeff: How did Reid ever get CBO to estimate deficit reduction? Garbage-in-garbage-out #tcot #hcr #killbill…