Posts Tagged ‘funding gap’

Another Little ObamaCare Surprise: How About A SEVENTEEN TRILLION DOLLAR Funding Gap?

March 31, 2012

The craziest thing of all is that this seventeen trillion-dollar unfunded spending is actually itself just a small fraction of the money that the most irresponsible political party in the history of the entire human race has spent without being able to even begin to pay for it:

Another $17 trillion surprise found in Obamacare
Published: 9:21 AM 03/30/2012
By Neil Munro – The Daily Caller

Senate Republican staffers continue to look though the 2010 health care reform law to see what’s in it, and their latest discovery is a massive $17 trillion funding gap.

“The more we learn about the bill, the more we learn it is even more unaffordable than was suspected,” said Alabama Sen. Jeff Sessions, the Republican’s budget chief in the Senate.

“The bill has to be removed from the books because we don’t have the money,” he said.

The hidden shortfall between new spending and new taxes was revealed just after Supreme Court justices grilled the law’s supporters about its compliance with the Constitution’s limits on government activity. If the court doesn’t strike down the law, it will force taxpayers find another $17 trillion to pay for the increased spending.

The $17 trillion in extra promises was revealed by an analysis of the law’s long-term requirements. The additional obligations, when combined with existing Medicare and Medicaid funding shortfalls, leaves taxpayers on the hook for an extra $82 trillion in health care obligations over the next 75 years.

The federal government has an additional $17 trillion unfunded gap in other obligations, including Social Security, bringing the total shortfall to $99 trillion.

The shortfall is different from existing debt. The federal government already owes $15 trillion in debt, including $5 trillion in funds borrowed during Obama’s term.

That $99 trillion in unfunded future expenses is more than five years of wealth generated by the United States, which now produces just over $15 trillion of value per year.

The $99 trillion funding gap is equal to almost 30 years of the current federal budget, which was $3.36 trillion for 2011.

The new $17 trillion funding gap is five times the current federal budget.

Currently, the Social Security system is $7 trillion in debt over the next 75 years, according to the Government Accountability Office.

Also, Medicare will eat up $38 trillion in future taxes, and Medicaid will consume another $2o trillion of the taxpayer’s wealth, according to estimates prepared by the actuarial office at the Centers for Medicare and Medicaid Services.

The short-term cost of the Obamacare law is $2.6 trillion, almost triple the $900 billion cost promised by Obama and his Democratic allies, said Sessions.

The extra $17 trillion gap was discovered by applying standard federal estimates and models to the law’s spending obligations, Sessions said.

For example, Session’s examination of the health care law’s “premium support” program shows a funding gap $12 billion wider than predicted.

The same review also showed the law added another $5 trillion in unfunded obligations for the Medicaid program.

“President Obama told the American people that his health law would cost $900 billion over ten years and that it would not add ‘one dime’ to the debt… this health law adds an entirely new obligation—one we cannot pay for—and puts the entire financing of the United States government in jeopardy,” Sessions said in a floor speech.

“We don’t have the money… We have to reduce the [obligations] that we have.”

ObamaCare was based entirely on lies from the very outset.  This bill seriously needs to burn in hell.

That $2.6 trillion ObamaCare figure – again, making it THREE TIMES what Obama promised the American people it would cost – is not some “right-wing talking point”; it comes right out of the CBO:

A Congressional Budget Office report shows that the cost of implementing President Obama’s health care overhaul will reach $2.6 trillion over a ten-year period, a dramatic increase from the White House’s original estimate.

In 2009, Obama stated that the legislation would cost “around $900 billion over ten years.” The CBO’s original ten-year numbers weren’t that far off, but critics of the health care bill noted then that the cost would be much greater once projections accounted for its full implementation.

Democrats pushed the back-loaded bill into law in 2010, although it isn’t scheduled to be fully implemented until 2014.

“The fact that the outlook for the law continues to worsen so rapidly, even before it is implemented, is ominous,” Alabama Republican Sen. Jeff Sessions said in a statement.

“And despite massive tax hikes and new penalties to pay for the bill, which CBO estimates have risen by another $99 billion compared to their estimates last March … the president’s health spending law will add at least $700 billion to the deficit over its first 10 years. Sadly, it may prove much worse than that.”

The CBO arrived at its $2.6 trillion figure after measuring the effects of expanding coverage over its first ten years in effect. At its full scope the health care law will result in “4 million fewer Americans [having] employer-based coverage,” the CBO noted.

As insane as that $99 trillion figure is, it is the lowball estimate of the sheer extent of the fatal debt cycle that the Democrat Party is entirely responsible for.  A peer-reviewed IMF publication cited the actual unfunded liabilities of the United States at over $200 trillion:

Boston University economist Laurence Kotlikoff says U.S. government debt is not $13.5-trillion (U.S.), which is 60 per cent of current gross domestic product, as global investors and American taxpayers think, but rather 14-fold higher: $200-trillion – 840 per cent of current GDP. “Let’s get real,” Prof. Kotlikoff says. “The U.S. is bankrupt.”

Writing in the September issue of Finance and Development, a journal of the International Monetary Fund, Prof. Kotlikoff says the IMF itself has quietly confirmed that the U.S. is in terrible fiscal trouble – far worse than the Washington-based lender of last resort has previously acknowledged. “The U.S. fiscal gap is huge,” the IMF asserted in a June report. “Closing the fiscal gap requires a permanent annual fiscal adjustment equal to about 14 per cent of U.S. GDP.”

This sum is equal to all current U.S. federal taxes combined. The consequences of the IMF’s fiscal fix, a doubling of federal taxes in perpetuity, would be appalling – and possibly worse than appalling.

I’ve written about how simply terrible and frankly wicked the Social Security boondoggle was from the very outset.  And what we could have had were the Democrat Party not the party of genuine evil in America

I’ve also written about the coming $600 trillion collapse that will implode America thanks to Barack Obama and his demonic crony capitalist friends.

Medicare will go bankrupt no later than 2017; and Democrats are demonizing every attempt by Republicans to save this failed system by making modifications that are critically needed to avert complete disaster.

The Democrat Party – the most reckless and irresponsible political body in the history of the world - has refused to produce a budget in 1,064 days.  And the ONLY budget Republicans can consider from the Democrat Party – Barack Obama’s budget – was so blatantly EVIL that it just went down in the House of Representatives on a vote of 414 to ZERO.

The Democrat Party ought to be called the “Demoncrat Party” – as in “the party of Demonic Bureaucrats.”

The United States of America is guaranteed to die if Democrats – and particuarly if Barack Obama – is allowed to have anything to do with its governance.


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