H.R. 2 “Repealing the Job-Killing Health Care Law Act”

Posted by PITHOCRATES - January 7th, 2011

Real Deficit Reduction Starts with the Repeal of Obamacare

The rallying cry last year was ‘repeal Obamacare’.  Those who promised to make that a priority are now sitting in Congress.  Some of those who voted for Obamacare are not.  The people have spoken.  The candidates have promised.  And now they are going to deliver.  At least they’re going to try.

The Republicans new and old are getting down to do the people’s business.  H.R. 2, aptly titled “Repealing the Job-Killing Health Care Law Act,” will try to do just that.  But the Left is digging in their heels.   First of all, they aren’t all that keen on the title of H.R. 2 (see Health repeal message-war ramps up by Brett Coughlin posted 1/7/2011 on the Politicol).

The White House released talking points and a “fact sheet” about the law, leading with how it creates jobs — a rebuttal to the title of the bill, “Repealing the Job-Killing Health Care Law Act.”

But they’re only getting started.  They then step it up.  And do what they do best.  Be disingenuous.

The White House stays on message about the law saving money, citing the Congressional Budget Office official estimate that the reform law reduces the federal deficit by $124 billion over 10 years. By contrast, the CBO said the House Republican package that repeals the law costs $230 billion.

So repealing a law that will extend benefits to every man, woman and child will add to the deficit?  Funny.  When I buy more stuff I pay more.  Because more stuff costs more money.  Doesn’t it?  If I buy an iPhone for my kid I pay for one iPhone.  If I buy an iPhone for everyone’s kids, I pay more.  So I’m pretty sure about this.  More stuff costs more.

So what kind of math is CBO using?

Robbing Medicare to Pay for Obamacare

Well, it ain’t calculus.  It’s just a variation on their old go-to formula.  Tax and spend.  With a twist.  They actually include spending cuts (see BREAKING: CBO Says Repealing ObamaCare Would Reduce Net Spending by $540 Billion by Philip Klein posted 1/7/2011 on The American Spectator).

The Congressional Budget Office, in an email to Capitol Hill staffers obtained by the Spectator, has said that repealing the national health care law would reduce net spending by $540 billion in the ten year period from 2012 through 2021. That number represents the cost of the new provisions, minus Medicare cuts. Repealing the bill would also eliminate $770 billion in taxes. It’s the tax hikes in the health care law (along with the Medicare cuts) which accounts for the $230 billion in deficit reduction.

So, yes, more stuff does cost more.  $770 billion in new taxes.  And $540 billion pulled out of Medicare.  (Which puts the cost of Obamacare at $1.31 trillion dollars).  Do the math ($770 – $540 = $230) and you get your $230 billion in deficit reduction.  A combination of one big-ass tax and a gutting of Medicare.  Now I understand their math.  They just told a bunch of lies.

AARP’s Backroom Deal to Endorse Obamacare

But didn’t the seniors oppose Obamacare?  I remember them fuming at the town hall meetings during the run up to Obamacare.  They were spitting mad, telling their representatives to keep their hands off of their Medicare.  To which their representatives replied not to worry.  Look, they said, AARP supports Obamacare.  And they only support things that are good for you old coots.  I’m paraphrasing, of course.

Well, AARP did endorse Obamacare.  And it does gut Medicare.  So why would they do this to the old coots?  Well, a good place to start would be to follow the money (see ObamaCare endorsements: What the bribe was by Dick Morris and Eileen McGann posted 11/6/2010 on The Hill).

The AARP got a financial windfall in return for its support of the healthcare bill. Over the past decade, the AARP has morphed from an advocacy group to an insurance company (through its subsidiary company). It is one of the main suppliers of Medi-gap insurance, a high-cost, privately purchased coverage that picks up where Medicare leaves off. But President Bush-43 passed the Medicare Advantage program, which offered a subsidized, lower-cost alternative to Medi-gap. Under Medicare Advantage, the elderly get all the extra coverage they need plus coordinated, well-managed care, usually by the same physician. So more than 10 million seniors went with Medicare Advantage, cutting into AARP Medi-gap revenues.

Presto! Obama solved their problem. He eliminates subsidies for Medicare Advantage. The elderly will have to pay more for coverage under Medigap, but the AARP — which supposedly represents them — will make more money. (If this galls you, join the American Seniors Association, the alternative group; contact sbarton@americanseniors.org.)

So that’s why.  They screwed their dues paying members so they can extort higher insurance premiums from them.  Boy, I’d hate to see what a group that isn’t paid to protect them would do to them.  Then again, I guess we’re going to see that real soon as Obamacare kicks in.  If it kicks in.

Obamacare Result in Higher Unemployment and a Longer Recession?

So they’ve been lying through their teeth and making backroom deals.  Tax and spend as usual.  Well, not quite as usual.  Because they have taken the spending thing a bit too far (see Deficit must fall to prevent economic crisis, Bernanke warns by Neil Irwin posted 1/7/2011 on The Washington Post).

If federal debt were to rise at the pace assumed in a plausible scenario analyzed by the Congressional Budget Office – such as extending most of the 2001 and 2003 tax cuts as spending rises at a steady rate – “diminishing confidence on the part of investors that deficits will be brought under control would likely lead to sharply rising interest rates on government debt and, potentially, to broader financial turmoil,” Bernanke said. He added that the high borrowing rate would limit private investment and push up the nation’s foreign debt, hurting U.S. incomes and standards of living.

There won’t be any income or standards of living if there are no jobs.  And just how is the jobs front after the stimulus they passed to keep unemployment under 8%?  It’s dropped unemployment all the way down to 9.4%.  But the drop probably has less to do with new jobs than it does with people just throwing in the towel in their job search.  So what’s the forecast?  According to Bernanke, bad.

“With output growth likely to be moderate in the next few quarters and employers reportedly reluctant to add to payrolls,” it will take five years before the unemployment rate has returned to a more normal level, he said.


Repeal Obamacare:  Real Deficit Reduction

It would appear that Obama, Pelosi and Reid are trying their all to destroy this country.  The economy is still in the toilet.  And, according to Bernanke, it’s going to stay in the toilet for another 5 years.  Or more.  And it will only be 5 years if we reduce our deficit.  If we don’t do that, all bets are off.  According to Bernanke.

Hmmm, deficit reduction.  If I’m not mistaken, there are two ways to cut a deficit.  I believe you can raise taxes.  Or cut spending.  One is good for the economy.  And one is bad for the economy.  So what to do?  Umm.  Of course, when you’re trying to revive an economy to pull it out of the worst recession since the Great Depression, you’re not going to do that by raising taxes.  No.  That doesn’t work.  Which leaves only one choice.  You have to cut spending.

Someone needs to knock the Left upside the head (figuratively, of course) and tell them to stop with the raising of the taxes already.  And the lying.  Yes, the deficit is too high.  But it didn’t get too high because of tax cuts.  It got too high because of spending.  I mean, if they didn’t spend so damn much all this talk about raising taxes would be a moot point.  Taxes are a function of spending.  Spend more; tax more.  Spend less; tax less.  More stuff costs more.  Less stuff costs less.  You know, that really is a difficult concept to grasp.  Unless you’re a Congress person, I guess.



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