Governors are now criticizing the health care bill backed by the Obama administration, saying it will cause health care costs and state deficits to skyrocket, while driving up unemployment. Arizona Governor Janice Brewer said the bill would end up “exacerbating our state’s fiscal woes by billions of dollars.” Rhode Island’s Donald Carcieri said “this legislation is bad for Rhode Island, its taxpayers, seniors, and economy….This bill is not about health care. It’s about ideology and special interests.” Indiana’s Mitch Daniels said it would lead to insurance “premium increases ranging up to 78 percent,” “huge tax increases” for medical “device manufacturers” that employ many, and “job losses” and “a job killing tax of $2,000 per employee” that “will be levied on many companies.”
Earlier, Tennessee’s governor, Phil Bredesen (D), called the bill the “mother of all unfunded mandates,” saying it will force states to spend so much that they will have to either massively raise taxes, or run large budget deficits that violate state constitutions.
The health care bill has now been changed to add additional tax increases, such as increasing the tax on uninsured individuals by an extra $2 billion and on employers by $25 billion. Also added are new cuts to Medicare Advantage, increased by $13.7 billion (to $131.9 billion), and Medicare Advantage interactions, by $53 billion (to $70.4 billion). This is according to the Congressional Budget Office. But the CBO has cautioned that “the agency has not thoroughly examined the reconciliation proposal to verify its consistency with the previous draft,” so there may be additional major changes that remain undisclosed until the House votes on the bill.
While the CBO has scored the health care bill as not increasing the federal deficit, thanks to the many tax increases in the bill, it has done so only by accepting many accounting gimmicks that even pro-Obama journalists have admitted are deceptive and conceal the bill’s enormous cost and the fact that it will massively increase the deficit.
Earlier, health care cost expert James C. Capretta explained how “Obamacare Is A Budgetary Disaster” that will cost at least $1.4 trillion more than promised.
The Congressional Budget Office, which refused to question Obama’s gimmicks to lowball the cost of his health care plan, nevertheless admits that “President Obama’s policies would add more than $9.7 trillion to the national debt over the next decade.”
There are $3,000,000,000,000 in tax increases in Obama’s budget. But he’s spending money at such a furious pace that the deficit will skyrocket anyway: “The president’s budget would borrow 42 cents for each dollar spent in 2010,” and “double the national debt over the next decade.” Obama recently ran up the largest budget deficit in history, by a huge margin.
ObamaCare would reduce medical innovation, raise taxes, drive up insurance premiums, and break campaign promises. It would cut the quality of care, while imposing restrictions that failed when tried at the state level. It ignores advice from experts about how to cut costs.