"You asked about the total budgetary impact of enacting the reconciliation proposal (the amendment to H.R. 4872), the Senate-passed health bill (H.R. 3590) and the Medicare Physicians Payment Reform Act of 2009 (H.R. 3961)," CBO said in its letter to Ryan. "CBO estimates that enacting all three pieces of legislation would add $59 billion to budget deficits over the 2010-2019 period."
Rather than cut the deficit by $1 trillion over two decades as Obama claims, the full health care package increases the deficit by $59 billion over one decade. The CBO only does budget estimates for 10-year periods.
There are other factors buried in the CBO's analysis that further debunk the president's claim that his plan will reduce the deficit. For example, the CBO discovered that the bill authorizes new discretionary spending that Congress will need to approve in future years to make sure the bureaucracies are in place to carry out the new plan. CBO estimates this will lead to "at least $50 billion" in new spending over 10 years that was not included in the health care bill itself.
By contrast, the CBO did include in its analysis of the health care bill $53 billion in new Social Security tax revenues it believed would come to the government when employers drop expensive health care plans that will be subject to a new federal tax and use some of the money saved on premiums to pay their employees higher salaries that will be subject to higher payroll taxes.
The problem with counting this $53 billion in Social Security tax revenue against expenditures in Obama's health care plan is that Social Security is already in deficit and faces a multitrillion dollar long-term shortfall.
Nor should Obama's socialized medicine plan be viewed in isolation from the rest of his budget. CBO says his fiscal 2011 budget proposal will increase the national debt by $9.8 trillion over the next 10 years. He is running a record $1.5 trillion deficit this year, and the smallest deficit he will ever run is $724 billion in 2014 -- the year his unconstitutional individual insurance mandate kicks in.
After that, the deficit starts an unbroken climb, surpassing $1 trillion again in 2018 and heading ever higher.
Just as Obama's claim that his socialized medicine plan will reduce the deficit by $1 trillion will be his defining lie, his legacy will be this: He bankrupted America.
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