Will the government increase deficit spending irrespective of public outcry?
*AP, by Calvin Woodward & Erica Werner, September 10, 2009
“FACT CHECK: Obama uses iffy math on deficit pledge
WASHINGTON – President Barack Obama used only-in-Washington accounting Wednesday when he promised to overhaul the nation’s health care system without adding ‘one dime’ to the deficit. By conventional arithmetic, Democratic plans would drive up the deficit by billions of dollars.
The president’s speech to Congress contained a variety of oversimplifications and omissions in laying out what he wants to do about health insurance.
A look at some of Obama’s claims and how they square with the facts or the fuller story:
OBAMA: ‘I will not sign a plan that adds one dime to our deficits either now or in the future. Period.’
THE FACTS: Though there’s no final plan yet, the White House and congressional Democrats already have shown they’re ready to skirt the no-new-deficits pledge.
House Democrats offered a bill that the Congressional Budget Office said would add $220 billion to the deficit over 10 years. But Democrats and Obama administration officials claimed the bill actually was deficit-neutral. They said they simply didn’t have to count $245 billion of it – the cost of adjusting Medicare reimbursement rates so physicians don’t face big annual pay cuts.
Their reasoning was that they already had decided to exempt this ‘doc fix’ from congressional rules that require new programs to be paid for. In other words, it doesn’t have to be paid for because they decided it doesn’t have to be paid for.
The administration also said that since Obama already had included the doctor payment in his 10-year budget proposal, it didn’t have to be counted again.
That aside, the long-term prognosis for costs of the health care legislation has not been good.”
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