Obama's Defining Lie

· Wednesday, March 31, 2010

History will remember how often and adamantly President Barack Obama insisted that the socialized medicine law he signed last week would reduce the federal deficit. It will be his defining lie.

"This legislation will also lower costs for families and for businesses and for the federal government, reducing our deficit by over $1 trillion in the next two decades," Obama said when he signed the bill on March 23. "It is paid for; it is fiscally responsible."

Two days later, he repeated the claim at the University of Iowa. "Costs will come down for families and businesses and the federal government, reducing our deficit by more than $1 trillion over the next two decades," he said.

Americans wisely do not believe him. A Gallup poll released on Tuesday asked people whether the federal budget deficit would "get better, not change or get worse" as a result of Obamacare. Sixty-one percent said it would get worse, and 14 percent said it would not change.

An honest look at the Congressional Budget Office analysis of the total health care package backs the commonsense conclusion of the average American.

On March 19, two days before the House voted to enact the Senate health care bill and a companion reconciliation bill to make alterations in the Senate bill, the CBO sent a letter to Rep. Paul Ryan of Wisconsin, the ranking Republican on the House Budget Committee, responding to his question about the combined budgetary impact of these two bills plus an associated bill to adjust the Medicare payment rates for doctors that House Speaker Nancy Pelosi has vowed to enact.

The bill to adjust the Medicare payment rates for doctors is needed because, under current law, those rates are set to suddenly plunge by 21 percent in April. After that, they are set to decline by about 2 percent per year for the next decade.

These dramatic cuts are the result of a gimmick members of Congress wrote into earlier budgets: They mandated that doctors' fees suddenly drop by one-fifth as a way of making the deficit spending they were voting for seem less than it was. They always knew they would repeal the dramatic fee cuts before they actually hit. Like Obama's claim that the health care bill will reduce the deficit by $1 trillion, these phantom fee cuts were a lie.

So, what is the impact on the deficit when the Senate health care bill, the reconciliation bill to fix the Senate health care bill and the bill to fix the phantom reductions in doctors' fees are all considered together?

"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.

COPYRIGHT 2010 CREATORS.COM


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Comments

Michael Gilroy

An even more disturbing note is that the CBO numbers are vastly understated. First, ObamaCare is a continuation of failed policy that caused the problem. There is direct correlation between third party payors (single or multiple) and price raises. Prices will rise faster. Second, the CBO numbers calculate 'cost' in terms of the government, not the People. For example, costs to the taxpayers in increased taxes are not used as a cost but revenue that offsets what the CBO defines as 'cost'. All in all, the People are getting more money taken away from them for expenses that continually exceed the amount taken away..destroying the currency and tax base.

Posted March 31, 2010 at 3:30:35 AM


ILEANA

There has been a velvet coup d'etat and Americans have not noticed or do not seem to care, they are being caressed by empty promises and blatant lies.

Posted March 31, 2010 at 8:47:54 AM


Chris Collins

I confess, the last line made me laugh out loud. Obama didn't bankrupt America, he inherited a bankrupted America from George W. Bush, the wars in Iraq and Afghanistan, and the shenanigans of Wall Street. Or is it so convenient to forget the worst financial crisis since the Depression?

Posted March 31, 2010 at 8:50:30 AM


Rob Risko

The government could use some "Lean Thinking" (Womack and Jones). Maybe a start with "The Goal" (Goldratt). Michael talks about using accurate metrics to determine health care costs...and he is spot on. Taxes are a liability to citizens AND the government. Less money to spend (or save) is a liability. The same is spoken of in "The Goal" where traditional industry counts inventory as an asset. In reality, inventory isn't making anyone any money any more than this health care plan will produce jobs (not a gov't responsibility) or reduce cost because of the "creative" accounting (or lies).

Posted March 31, 2010 at 9:15:11 AM


g.wegmann

Only those zealots who believe everything that comes out of the mouth of our LIChief,accept the untruths that Obama has been spewing since his campaign for the Presidency. How can we count the lies he and his "capos" in the House and Senate have been regurgitating to ram their brand of socialism and redistribution of wealth? It would take a calculator to keep count of the lies, and a sleuth to find a truth in all they have disgorged!

Posted March 31, 2010 at 9:21:15 AM


Bob W

Bull crap is all it is!

The so-called health care bill has nothing to do with health care, but has everything to do with blatant Socialism.

Why haven’t the people who believe this is good for the country seen the true reason for this bill? Barrack Obama, Max Baucus, Maxine Waters, et al., ad infinitum, ad nausea socialist liberals have been saying it for years, it is simply the "redistribution of wealth."

How is it redistribution of wealth you might ask? Well first of all, the majorities of young adults don’t visit doctors and can expect good health until they are in their late 30's to early 40's.

So by forcing, unwillingly, Each and Every Citizen of this once Free and Democratic country to buy insurance or be fined or imprisoned, the government “redistributes” those people earnings into a large pool of monies available for everyone else to utilize. Now, more money will be available for those who are illegal, those who are indolent, those who choice to live off the system, those who choose to not further themselves through study, industry, or education, and all the remaining welfare wards this country continues to ensure festers and grows.

When will these people understand that every person is different; every person has their own behaviors, cognitions, personalities, traits and temperaments, good and bad?

Some people chose to pursue, through hard-work, lengthy study, and grit and determination, to better themselves, their families, and their lives; while others chose not to pursue advanced education, prefer not to work harder, prefer to live pedestrian lives, and prefer the easy, less "stressful" lives, and that’s fine is they so chose.

Socialists, like our president and his liberal followers, believes that it is not that these people mentioned chose not to do certain things to better themselves, but that these people who have not worked hard, have not decided to pursue advance education, who have not decided to bust their butts all their lives to make something of themselves and provide better for their families, is because the "successful" in America somehow "hold them down," through persecution of the minority and the withholding of vital information to ensure these people never attain success in their lives. Again I say, Bull Crap!

This mentality is why we have Socialists, Communists, and Fascists. They believe there is a Capitalist conspiracy and a “rich man next door” plotting to keep the poor poor and the rich rich.

How can it have something to do with those "rich” people who busted their butts, sacrificed many years of their lives studying and working, sacrificed time with friends and family, were frugal and saved, invested wisely and didn't get greedy? Impossible says the Socialists American Liberals!

When will they understand there will always be poor, lazy people, there will always be those who don't want to work harder, and there are those whose personalities show, or will ever show, motivation to better themselves.

But what many of these people in America now understand is that why should I work harder, why should I study and sacrifice time with friends and family, why should I do anything when Mother America will provide for me. After all, I get extended welfare benefits, never ending unemployment assistance, food stamps, free help with my mortgage, help with buying a new car, and now low and behold, free education, All At The Expense of those Who SACRIFICED and were Much More Industrious in life.

Liberal socialists in our country are psychologically deficient and pathologically impaired. They are extreme dependent personalities with egotistical prejudice. Until we change the mentality of our people and the government's ideology and philosophy about the psychology of people and difference in each ones mentality, we will continue our steps towards socialism and end up in communism within the next century.

Not everyone can be a doctor, a lawyer, a psychologist, an engineer, or thank God, a politician. Some of us will be laborers, mechanics, receptionists, farm hands, and janitors, and some will be poor; and that’s fine.

But to each his or her own, the fruits of his or her own labors. Until we get this truism, we will end up a Communist state in the near future.

Posted March 31, 2010 at 10:04:30 AM


Bob W

Ironically, my point above made in this newest FOX News Article I just came across.

http://www.foxnews.com/us/2010/03/31/money-good-habits-doesnt-change-lives/

Posted March 31, 2010 at 11:02:26 AM


Richard Poulin

Bob W; As a retired United States Marine, you just hit the bulls-eye on everyone of you points!

I was in Australia last year and was picked up by a cabbie at the airport. I've been to Australia many times before so on the way to the hotel we were just conversing about life in general. I asked the cabbie how he liked his job; he replied, "This is my second job, I have to work two jobs in order to keep up with the taxes so the lazy that are on the dole can live a comfortable life without having to work!"

The above sounds exactly like the path America is heading! We have to hold people responsible for their actions, get them off their butts and start working vice holding out a hand!

Posted March 31, 2010 at 11:26:13 AM


TJS

The Medicare doctor pay adjustment was created to fool the CBO. Just like the pretend Medicare cut of $500+ billion. By leaving out doctor costs AGAIN, they fooled their minions again. CBO cost estimates like this ought to be attacked mercilessly. Americans know that all this new coverage will cost more and hurt quality.

Posted March 31, 2010 at 1:52:21 PM


Craig

It doesn't matter what the O'man does, his goal is to destroy America. He is a Muslim and will do what he does to desroy this country.

Posted April 6, 2010 at 10:14:04 PM


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