Wednesday, December 23, 2009

Health Care and Our Deficit

Congress claims their one trillion dollar health care bill is deficit neutral over ten years. Taxes and fees start immediately and benefits begin four years from now! Okay, I will bite, lets take a look at Congresses figures. The graph below breaks down the taxes/fees collected each year, benefits paid, and deficit in Billions of dollars. Notice after 10 years Congress is right; the balance is nearly zero which clearly indicates the program is deficit neutral after ten years.

BUT; notice how the deficit increases every year starting with year 11. This is why Congress calculated this program in this manner; to make it appear their plan pays for itself!

YR Taxes/Fees.............Benefits Paid.........Deficit
1 $100.................$ 0....................$100
2 $100.................$ 0....................$200
3 $100.................$ 0....................$300
4 $100.................$ 0....................$400
5 $100.................$166...................$334
6 $100.................$166...................$268
7 $100.................$166...................$202
8 $100.................$166...................$136
9 $100.................$166...................$ 70
10 $100.................$166...................$ 4
11 $100.................$166..................-$ 62
12 $100.................$166..................-$128
13 $100.................$166..................-$194
14 $100.................$166..................-$260
15 $100.................$166..................-$326

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