In this morning’s Washington Post, editorial page editor Fred Hiatt argues that the House health care bill “could take America a step closer to bankruptcy” and harm “the poor and vulnerable.” But since the CBO’s analysis of the House health care bill doesn’t support Hiatt’s contention that it would bring America to the brink of bankruptcy, Hiatt relies on the CBO’s analysis of the President’s entire budget and implies that it’s Obama’s health “plan”:
The root difficulty is Obama’s insistence that the nation can afford a large new social program without raising taxes on anyone who earns less than $250,000 per year. Under his plan, according to a CBO analysis, the government will be spending 24.5 percent of gross domestic product — the total value of the national economy — by 2019 while raising only 19 percent in revenue: a huge, unsustainable gap.
The 24.5% of GDP isn’t a measure of government spending as a result of the House/Obama health care bill. It’s a measure of the outlays of all of the President’s policies in his 2010 budget in 2019 and does not capture the deficit-reducing effects of health care reform or the House bill. The Wonk Room has more.