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Good News from the CBO? Nah, Not Really

John on August 24, 2011 at 11:08 am

Reuters reports on what sounds like good economic news from the CBO:

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Don’t get too excited. As Ed at Hot Air points out, CBO is using all sorts of assumptions about projected growth, tax rates, etc. that will almost certainly turn out to be false.

Just one example, the doc fix. CBO is still assuming that Medicare reimbursement rates will drop because for the first time in years Congress will not pass a “doc fix” to raise them. All you need to know is that Obamacare’s budgeting was also heavily reliant on cutting reimbursement rates and yet last year after Obamacare passed Congress once again passed a doc fix to make sure the higher rates continued for another year. If they couldn’t go through with it then, they won’t go through with it this year or next either.

Still, I wouldn’t be surprised if the President tried to claim credit for this wonderful news. He took a lot of heat for conceding to the GOP on the debt ceiling deal, he needs to claim something out of it. A claim that he has cut the deficit sharply (as he promised) will certainly sound good in a campaign ad, even if it’s complete hokum that no one inside DC believes is true.

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Category: Energy & Economy |

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