CBO Report: Spending Is Driving Debt to “Unsupportable” Level
...CBO’s “alternative” projections ... make clear once again that too much spending—not too little tax revenue—is the biggest threat to the country’s fiscal and economic health. Among other things, the alternative figures show that:
Federal spending will consume record levels of resources as a share of the economy, reaching nearly one-quarter of gross domestic product (GDP) in 2022.
Without tax increases, tax revenue would still reach its historical average, but uncontrolled spending would outpace revenue. This would push federal debt to levels that the CBO calls “unsupportable.”
CBO’s conventional baseline (defined by statute) projects spending, tax revenue, and deficits assuming current law—including scheduled changes in law. This includes an expiration of the “doc fix,” which has prevented a plunge in Medicare physician reimbursements every year since 2003, and the expiration of the Bush-era tax policies, as well as a number of other tax provisions. These would result in a tax increase of about $4 trillion over the next 10 years. These assumptions represent what CBO calls “a significant departure from recent policies.” That is, no one expects these changes to happen...
Oh, and as for Obamacare itself -- guess what?
CBO: New 10-year projected cost of ObamaCare is … $1.76 trillion
...The original 10-year price tag, the one that made it “safe” (but not really safe) for Democrats to drop this fiscal atomic bomb, was $940 billion. What happened, you ask? Well, see for yourself:
Remember, they gamed this thing so that it wouldn’t take effect until 2014, which means that the cost of the first four years of implementation was essentially zero. That $940 billion figure really represented just six years of cost, not 10, but it was politically invaluable to Democratic messaging in letting them tout the bill as costing less than a trillion dollars. Now that we’re nearing 2014 and the 10-year window of cost projections has slid forward, you can see what this leviathan boondoggle really costs: $1.76 trillion, soon to top $2 trillion when the window slides forward another year in 2013 and the new projection reaches into 2023.
But wait. More good news: "Four million Americans can expect to lose their employer-provided healthcare by 2016, according to the revised figures, far more than the 1 million people estimated last year..."
Thanks to the economy, we’re going to end up with a lot fewer people getting health insurance through the workplace than previously estimated and a lot more people getting it through Medicaid, which, as Klein notes, inches us a little closer to that government takeover of health care that the left insists is a conservative myth...
This represents another all-too-predictable failure by the Utopian Statists -- also known as Democrats -- who are bent on dominating our lives.
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