Health reform foes are accusing Democrats of gaming the price tag by juggling the start dates for revenue and benefits. On separate Sunday talk shows columnists George Will and David Brooks asserted that the plan's deficit reduction promise is bogus because it has 10 years of taxes and 6 years of benefits.
That's a potentially devastating statistic for Democrats. It plays to suspicions of phony math. But, as always in these budget fights, it's complicated.
The Congressional Budget Office, which "scored" the health plan last week, is limited to scrutinizing the legislation it is given. By delaying the start date for some spending until after four years of increased revenue, the bill's deficit neutrality is enhanced. But the CBO estimators say that the plan will continue to reduce the deficit after the first ten years, undercutting what Will, Brooks and others are implying, that once the full plan is up and running there will be no deficit reduction.
"CBO expects that the legislation, if enacted, would reduce federal budget deficits over the decade after 2019 relative to those projected under current law." (CBO report, 3/11)
Republicans discount that projection because it is partially based on spending cuts that they say Congress will not have the guts to impose. They're probably right. Both sides play with the future to make the present look better in these budget games. And the CBO itself acknowledged as much in a disclaimer.
"These longer-term calculations assume that the provisions are enacted and remain unchanged throughout the next two decades, which is often not the case for major legislation." (CBO report, 11/18)
Despite the CBO's long term deficit reduction prediction, the GOP has a powerful talking point at its disposal, that the short term Democratic balance sheet is based upon 10 years of revenue minus only six years of expenditures. Unfortunately for Democrats, on this score their defense, although valid, is more complicated than a sound bite.
Roundup:
CQ Today reports that Democrats are confident about passage but are "trying to resolve at least two important issues: making Medicaid funding equitable to all states and addressing Hispanic lawmakers' concerns about immigration. A third issue, abortion, has been set aside, Democrats say."
- Activists Target Undecided Democrats (Congress.org)
- Gibbs: Health Bill Will Pass (CBS)
- Boehner Determined to Kill Dem Health Care Bill (AP)