CBO Estimates Cost of Finance Cmte's Reconciliation Plan
by Guest Blogger, 10/27/2005
The Congressional Budget Office has prepared a report estimating the budgetary effects of the Finance Committee's reconciliation recommendations. The CBO found that, overall, the committee's recommendations would generate $819 million worth of "savings" in 2006. In 2007, however, because they suggest delaying Medicare payments one year, the proposal would actually end up costing over $4.5 billion. The net cuts from 2006-2010 are estimated to be $10 billion.
This is an impressive amount for lawmakers who are particularly worried about excessive government spending; however the amount is dwarfed by the amount the government is spending for the 2001 and 2003 tax cuts this year alone: $225 billion. It seems like it would make more sense to repeal some of this cost in looking for "savings," in government expenditures, rather than cut corners in programs that serve millions of people.
