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"If the government robs Peter to pay Paul, he can count on the continued support of Paul.

Saturday, October 31, 2009

Pelosicare - How to turn a $1.3T plan into a claim of $104B in deficit reduction

"Total cost of this bill: $1.055 trillion
But hold on a sec you say - Pelosi says cost is $894 billion. Well you see, penalties on individuals and companies are expected to be $161 billion. Let’s just not count that as part of the cost.
'Net' cost: $894 billion
Of yeah, and don’t count the $245 billion increase to Medicare that needs to pass separately.

"How to 'pay' for it?
Tax increases: $572 billion
Cuts to Medicare Advantage etc.: $426 billion

"So here’s how Pelosi math works when you add everything up:
$1.3 trillion grand total health care plans
- $245 billion that doesn’t count
= $1.055 trillion AHCAA cost
- $161 billion in penalties that doesn’t count
= $894 billion ‘net’ AHCAA cost
- $572 billion in tax increases
- $426 billion in program cuts
= ($104 billion) which we claim as deficit reduction

"Isn’t that special?

"Or to sum it up a different way:
$161B in penalties
+ $572B in tax increases
= $733B more collected from 'us' in this bill

"So looking at it that way, you get:
$1.3T total cost
- $733B from us suckers now
- $245B from us suckers later (add it to the deficit)
- $426B in cuts even though we know they won’t happen
= ($104B) in alleged deficit reduction"

Here is how the math was done:

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