Friday, January 21, 2011

Fixing the Obamacare CBO Fraud

When Obamacare was passed under the previous Democrat Congress, it provided for 10 years of increased taxation (starting now) and 6 years of benefits that, on net, will reduce the deficit by $100B over those ten years according to the House budget estimators, the CBO. The GOP rightly called foul but the Democrats and their helpers in the media focus like a laser beam on the CBO estimate.

The GOP chairmen who have jurisdiction really need to ask the CBO to rerun their 10 year estimate this year. This will reduce the subsidy years from 4 to 3 and will have the advantage of at least one year of real-world data to better project tax revenue from. The inevitable headline will be one of Obamacare not being as good a financial deal as advertised. This will be especially important for all those pro-Obamacare Senators up for election in 2012.

The fraud was always going to unravel but by re-running the CBO estimates (every year until the thing is repealed if necessary) the GOP can simply, reasonably, go along with the Democrats and watch as the Democrats are hoist by their own CBO petard.