Our economists are eagerly pacing the office due to news reports that the Congressional Budget Office (CBO)The Congressional Budget Office (CBO) provides nonpartisan analysis to the U.S. Congress on federal economic and budgetary matters. will today release their estimate of the Baucus health care plan’s cost. The Baucus plan is often cited as the plan most likely to get enough support to pass Congress.
I too am curious what CBO comes up with. I find arguments that a new health care entitlement program will somehow pay for itself to be about as accurate as arguments that all taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. cuts pay for themselves. Everyone wants a free lunch, or at least knows that’s what sells.
As Milton Friedman said, “If a tax cut increases government revenues, you haven’t cut taxes enough.” Maybe someone should come up with a similar quotation for a government program.Share