About That Deficit Reduction
I based my opposition to health care reform on a simple premise I repeated over and over – we can’t afford it. I never believed the bill would reduce the deficit and I still don’t. And I’m not alone – here’s Jay Cost:
Between now and the next presidential election, ObamaCare is going to pay out virtually zero dollars in benefits, but it will take billions out of Medicare. This is bad for seniors. They have an incentive to oppose portions of this bill (while supporting others, like the closing of the “Doughnut Hole,” which Republicans will never repeal). While the Democrats will claim that this reduction in benefits will have no effect on the quality of their care, CBO is much less certain:
Under the legislation, CBO expects that Medicare spending would increase significantly more slowly during the next two decades than it has increased during the past decades (per beneficiary, after adjusting for inflation). It is unclear whether such a reduction in the growth rate of spending could be achieved, and if so, whether it would be accomplished through greater efficiencies in the delivery of health care or through reductions in access to care or the quality of care. (Emphasis mine)
…After decades of developing a reputation for defending the interests of senior citizens, the Democrats have put it in serious jeopardy with this legislation. And they’ve done so right at the moment when demographic shifts are making the senior population more powerful than ever.
Why create such an imbalance between winners and losers? The Democrats are not fools. Why would they do this?
The answer is pretty simple: to hide the true cost of the bill. They don’t want to push a $2 trillion program now because this country is facing the greatest deficit crisis it’s seen in decades – and such a price tag does not make for good politics these days.
These budgetary gimmicks enabled them to pass the bill, winning over enough self-described “deficit hawks” in the Blue Dog wing of the party to limp to 219 in the House last night. Yet their smoke and mirrors can only mask, not alter the reality, which is this: at a time when the country is facing an enormous deficit problem, the Democrats have created another significant financial obligation for Uncle Sam.
…If it comes down to a choice between a new tax on the middle class or scaling back the unimplemented provisions of ObamaCare, guess what the policymakers in Washington, D.C. will choose. We’re definitely heading toward some kind of hard choice about the deficit. If we weren’t, the Democrats wouldn’t have employed all those gimmicks to claim that the bill costs less than $1 trillion. They know people are worried about this issue.
Last week, President Obama said again and again that the time for talk is over. Yet this week he’s going on the road to defend his new bill. This is why. ObamaCare is politically vulnerable. It lacks the bipartisan support that created and protected new entitlements in decades past. The public does not have confidence in it. Worst of all, it creates an imbalance between winners and losers for four years, and it amounts to a staggeringly expensive new entitlement at a time when the country has to think hard about how to trim its sails.