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PoliCon
10-08-2009, 12:39 PM
CATO INSTITUTE

What They Arenít Telling You About the CBO Score

Posted by Michael D. Tanner

The CBO report that said the health care bill wonít raise deficits makes it clear that the Baucus billís reduction in future budget deficits comes not from controlling government spending or reducing health care costs, but because of a rapid escalation in tax revenues.

The bill imposes a 40 percent excise tax on health-insurance plans that offer benefits in excess of $8,000 for an individual plan and $21,000 for a family plan. Insurers would almost certainly pass this tax on to consumers via higher premiums. As inflation pushes insurance premiums higher in coming years, more and more middle-class families would find themselves caught up in the tax.

In fact, overall, the tax increases in the bill are more than double the amount of deficit reduction. This isnít a health care efficiency bill or a cost containment bill. It is a tax and spend bill, pure and simple.
Michael D. Tanner ē October 8, 2009 @ 10:55 am

LINK (http://www.cato-at-liberty.org/2009/10/08/what-they-arent-telling-you-about-the-cbo-score/)

lacarnut
10-08-2009, 01:27 PM
Increased taxation will start once a bill is passed. However, the health care program will not be implemented until 2013. Why wait 4 years. Answer. The Government collects additional taxes from individuals, reduces payments to doctors and hospitals, cuts 500 billion out of medicare, etc. The cost figure the CBO is putting out is for a 10 year period but will only contain 6 years of benefits for those that do not have insurance. The following 10 years is where this program's costs will snowball into oblivion. It would not surprise me if the government spent the extra money in taxes and savings from cuts during that 4 year period just like they have done with the SS Ponzi scheme.