US Senator Bob Menendez tries to rekindled Democrat claim that the new health care tax will reduce deficit by more than $1 trillion

US Senator Bob Menendez tries to rekindled Democrat claim that the new health care tax will reduce deficit by more than $1 trillion
July 11,2012
the staff of the Ridgewood blog.

Ridgewood NJ, According to Bill Wichert of the The Star-Ledger (https://www.nj.com/news/index.ssf/2012/07/politifact_nj_menendez_claims.html ) In the hours after the U.S. Supreme Court ruled on the constitutionality of  the of Presidents Obama’s signature  Healthcare law, the Democratic senator claimed health care reform policies will lower the deficit by more than $1 trillion over the next 20 years.

Wichert went on to quote Senator Menendez in a June 28 interview on the Regional News Network’s Richard French Live. ,”So the reality is the Congressional Budget Office says we save $250 million over the first 10 years. Over the next 10 years, we save $1.2 trillion in savings in terms of health care”.( https://www.nj.com/news/index.ssf/2012/07/politifact_nj_menendez_claims.html )

Now we are not one to buy into almost any long term estimates ,the velocity change is just not a constant but unlike the Senator ,the CBO takes the opposite view and Senator Menendez clearly didn’t get the memo on the CBO’s estimates (https://cbo.gov/publication/43080):

The current estimate of the gross costs of the coverage provisions $1,496 billion through 2021 is about $50 billion higher than last year’s projection; however, the other budgetary effects of those provisions, which partially offset those gross costs, also have increased in CBO’s  (Congressional Budget Office ) and JCT’s (Joint Committee on Taxation) estimates to $413 billion leading to the small decrease in the net 10-year tally.

Over the 10-year period from 2012 through 2021, enactment of the coverage provisions of the ACA was projected last March to INCREASE federal deficits by $1,131 billion, whereas the March 2012 estimate indicates that those provisions will INCREASE deficits by $1,083 billion