Friday, January 7, 2011

Why doesn't the CBO count the waiver process

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.
Obama has issued some 200 waivers already. What is the likelihood that Obamacare police can chase down millions of mostly unemployed, healthy young people? The CBO is not allowed to compare wage channels with the new entitlement channel.  A comparison might show that Obamacare does not leave enough wage flexibility in the private sector.

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