America, You Asked For It!

Political News and Commentary from the Right

CBO: Reid’s bill WILL increase deficit by $170 billion

Once again, Democrats are telling bold-faced lies when they claim their legislation will reduce the deficit and extend the life of Medicare! This time they’re using Bernie Madoff/Enron style accounting tricks to camouflage their lies.

In response to a request by Senator Jeff Sessions, the CBO today released a statement correcting the misrepresentations being propagated by Senate Democrats. Reid, President Obama, and other Democrats are claiming the CBO score indicates the Senate bill will reduce the deficit by $130 billion over the next 10 years and add 9 years to the lifespan of Medicare.

But the CBO says not so fast. It appears Democrats took great care in phrasing their request to the non-partisan agency, playing a sort of shell game to fool the American people with a slight of hand. Evidently, hen Harry Reid requested the CBO score, he only asked for the impact on the Medicare trust fund balance. That doesn’t sound so bad until you understand what the CBO calls “Trustfund Accounting.”

The Medicare Trust Fund doesn’t actually hold hard assets. It’s more like a drawer full of IOUs issued by the federal government, if it’s operating in the black. The Trust Fund takes money in and pays money out. If it takes in more than it pays out, the government takes the surplus and issues the Trust Fund an IOU.

Now it’s not like the government puts that money in a savings account. Our never frugal government spends that money it collected to pay for Medicare on something else! No plan on how to pay off the IOU when it comes due either. Just pass the debt on down to future generations.

The Trust Fund Accounting system used by the CBO doesn’t account for what happens to the cash once it’s removed from the Trust Fund, or the government’s ability to repay the borrowed money. This accounting method treats Uncle Sam’s IOU the same as you and I treat our bank account. Just like the folks at the Medicare office could walk up to a teller and say “I’d like to withdraw all our money.”

The problem is, there is no money. It’s just a piece of paper that’s waiting for some future Congress to raise taxes on our children to repay the money.

In the current legislation, the CBO saw Reid’s bill would result in approximately $300 billion more being taken into the Medicare Trust Fund than it would pay out in the next. So Obama, Reid, and Pelosi will write out a professional looking IOU, hand it to the Medicare Trust Fund accountant and leave with $300 billion of taxpayers’ money. That money will be used to create new federal programs, fund abortions, pay bureaucrats, and other creative ways government finds to squander money.

“To describe the full amount of HI trust fund savings as both improving the government’s ability to pay future Medicare benefits and financing new spending outside of Medicare would essentially double-count a large share of those savings and thus overstate the improvement in the government’s fiscal position.”

But to make it look nice, Reid and his Democrat cohorts rigged it to look like $130 billion won’t be spent. So, in effect the deficit should be reduced by $130 billion. Sounds good right?

The problem is, they’re also trying to claim the entire $300 billion (of which they’ve blown $170 billion) is used to extend the viability of Medicare. Put simply, they want to spend the $170 billion now and say the $170 billion IOU they issued is going to keep Medicare going. Now, no one can be 100% sure, but it seems like doctors will probably start quitting when they begin getting government IOUs instead of greenbacks for compensation!

Obama, Reid, and other Democrats are counting that $170 billion twice. They’ve taken $300 billion from us they say we’ll get back in Medicare benefits. They’ve spent all but $130 billion of it, but continue to claim they’ve set aside the entire $300 billion for our benefit!

Here’s the real kicker. The only way we get that $170 billion in benefits we were promised is to raise taxes on our children!

This is nothing short of stealing from future generations! Harry Reid and his Democrat Senate comrades are nothing more than two-bit con artists who would sell our children’s future to satisfy our President who suffers with an “unprecedented” level of egotism and narcissism.

Tomorrow at 7:00 AM Eastern they vote to saddle our children and grandchildren with higher taxes, higher deficits, and a lower standard of living. Tomorrow morning, they will slap themselves on the back and congratulate themselves for conning us out of more of our money.

They’ll be home until the middle of January. Make a point of letting your Senators know you haven’t been fooled. Make sure they understand you know what they’re up to, and that you’ll do everything in your power to send them home when they’re next up for reelection.

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December 24, 2009 - Posted by | Health Care | , , , , , , , , ,

5 Comments »

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  2. […] the final vote, the CBO released a statement showing the devious Democrats were inappropriately double counting $300 billion to arrive at their claimed deficit […]

    Pingback by Health Care Lies by Blanche Lincoln (D-AR) « America, You Asked For It! | December 28, 2009 | Reply

  3. […] taxes AND raise health insurance premiums, that WILL make taxpayers responsible for abortions, that WILL increase the deficit, that WILL result in the rationing of health care (especially for seniors), […]

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  4. sorry you are totally wrong. CBO scored the entire bill, and re-affirmed it, in dec. after the whole sessions/ryan nonsense, which they just resumed. The deficit reduction comes from cuts in medicare, while the life of medicare is expanded by the tax hike, only sessions asked if the cuts could lengthen the life of medicare, his response letter was what you quoted. YOU are the one being lied to. The cbo would never score a bill full of gimmicks and ignore them, they are economists, and that would completely destroy their use-value. Its just a lie, and its already been settled. Get news from journalists and research, not politicians.

    Comment by dude | March 22, 2010 | Reply

    • You people who believe you can add thirty million people to a system without increasing its cost, who believe this bill is a good thing when every medical professional I’ve spoken with thinks it’s bad, who believe people like me (who have chosen for years to forego purchasing luxury items like cell phones, bass boats, big screen tv’s, luxury homes or apartments in high class neighborhoods, new-or even expensive used-cars, etc. in order to afford health insurance) should have to pay increased premiums to subsidize those who’ve made poor choices we didn’t, have a severe misunderstanding of the American dream. You have a severe misunderstanding of the way entitlements mature, and you have a complete ignorance or misunderstanding of their effect on the human psyche.

      Perhaps you’ve had your hand out your entire life, perhaps your parents beat you as a child, perhaps you had a bad break up with your first girlfriend, I don’t know. It could have even been an extremely liberal school you attended, bent on proselytizing Marxism on its young charges. But if you are over the age of 25, something damaged your brain at some point in your life. And now you only seem to see, and look for, who will be the next to fill your hand if you extend it.

      I feel sorry for you and your kind. Your ignorance of these things will guarantee you’ll never truly find happiness. But I’m mad as Hell that you’ve now forced it on my children. Children who’ve been taught and trained that hard work leads to success, and handouts are food for slaves because that’s what those who take them become–slaves to the masters who hand out their crumbs.

      The bill is now being scored with the “Fixes” bill passed by the House after it passed Reid’s bill last night. This bill must be passed by the Senate and also signed into law by President Obama before it’s economic impact can be considered part of the bill just passed.

      You sir, are the one being lied to. But the lie is exactly what you want to hear, so you’ll ignore facts. Go ahead, continue stumbling along in the dark behind those who leave you their crumbs. But know that you and your lazy, Marxist ilk are the ones who marked the beginning of the end of the greatest country on Earth.

      Comment by John Allison, III | March 22, 2010 | Reply


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