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Smith: Baucus Health Care Bill Robs Peter To Pay Paul


Location: Washington, D.C.

Congressman Lamar Smith issued the following statement regarding the Congressional Budget Office's (CBO) preliminary score of the health care bill sponsored by Senate Finance Committee Chairman Sen. Max Baucus:

"Basic common sense begs the question: ‘How is it that the Federal Government can save $81 billion by spending an additional $829 billion?'

"For the Democrats, it's simple: raise taxes by $500 billion on employers and Americans who have insurance and cut Medicare and Medicaid benefits for seniors by more than $400 billion. That's how Sen. Baucus and the Senate Democrats spend $829 billion and still claim to reduce the deficit. It's worse than a budget gimmick. It's robbing Peter to pay Paul.

"Americans who have health insurance will see their premiums go up because of a new tax on insurance policies. According to the nonpartisan Joint Committee on Taxation, the taxes on insurance companies will be passed on to consumers in the form of higher premiums.

"Even with hundreds of billions of dollars in tax increases and cuts to Medicare, the claimed reduction in the deficit is based on assumptions about health care costs and spending that will never hold up over time. The history of entitlements in our country is one of growth, expansion and unexpected cost overruns.

"Furthermore, after all of this, according to the CBO there will still be 25 million uninsured Americans in 2019. How does any of this make sense?"

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