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Blog Directory Del's Perspective: Caveat Emptor: Rethink Obama's Health-Care Bill

Friday, July 24, 2009

Caveat Emptor: Rethink Obama's Health-Care Bill

Are you sold on the Obama Health-Care bill? If so, think about a serious issue that hasn't been completely explained to Congress or the American public.

In 2006 the Democrats took over control of Congress and immediately they restored the pay-go as a rule for both houses. (In basic jargon, this meant that if a new entitlement program were enacted, in order to pay for it some other program had to be cut....somewhere). This year, Obama begged the legislature to make it a law, envisioning that he would have more power to enforce it. What is not reported to the public is the fact that it could do the opposite. This bill states that if Congress has spent more on new entitlements (or has given more tax cuts) than it has saved, the Prez. can roll back or hide the excess.

So why is that such a bad idea? The Congressional Budget Office sent out an alarming memo that said that the bill as introduced might allow spending to increase by an alarming amount ( let's call it an astronomical amount). The memo further stated, "that rule would allow Congress to enact legislation that would increase deficits by an amount in the vicinity of $3 trillion over the 2010-2019 period with a sequestration."

Still confused? The bill would exempt from pay-go all of the spending in Medicare physician payments and all of the revenue dependent on estate and gift taxes, the alternative minimum tax for individuals and the administration's plan to continue the middle-income tax cuts of 2001-2003.

This pay-go program doesn't have a multi-year cap on discretionary spending and could result in a budget with a 40% loophole of staggering proportions that doesn't have to be paid for.

Mr. Obama promised transparency, he promised a "revenue neutral" budget, he promised accountability. What many are seeing is a devil in the details that might just up and bite us on the butt. Caveat emptor.

2 comments:

  1. You might find this interesting Del:

    http://airamerica.com/ronreagan/blog/2009/jul/28/senator-bernie-sanders-updates-ron-reagan-health-care-debate-audio#

    ReplyDelete
  2. Del,

    I just have a quick question for you but couldn't find an email so had to resort to this. I am a progressive blogger. Please email me back at barbaraobrien@maacenter.org when you get a chance. Thanks.

    Barbara

    ReplyDelete

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