Long-term con: Obamacare was 'paid for' by nationalizing student loans | Washington Examiner

  

Category:  News & Politics

Via:  texan1211  •  4 weeks ago  •  8 comments

By:   TPCarney (Washington Examiner)

Long-term con: Obamacare was 'paid for' by nationalizing student loans | Washington Examiner
It may be hard to recall these days when a Democratic White House proudly rejects any guiderails from things such as economics or the Constitution. But back in the Obama years, they considered themselves the wonks. And Obamacare was supposed to be the triumph of the wonks.

S E E D E D   C O N T E N T



It may be hard to recall these days when a Democratic White House proudly rejects any guiderails from things such as economics or the Constitution. But back in the Obama years, they considered themselves the wonks. And Obamacare was supposed to be the triumph of the wonks.

As the law aged, its rickety construction became clearer, which is why most of the top-tier Democratic presidential candidates in 2020 ran on replacing Obamacare. Among other problems, the bill's "pay-fors," the revenue enhancements that would supposedly dampen the law's effects on the deficit and on inflation, all evaporated.

More specifically, Democrats repealed them, showing that they never really intended for the bill to reduce healthcare spending or pay for itself.

The CLASS ACT was a Ted Kennedy brainchild, creating national long-term care insurance. Democrats included it in Obamacare, and it was actually called a revenue raiser — supposedly raising $87 billion over 10 years, because people would be paying premiums, and the benefits wouldn't go out the door until mostly after the 10-year window on which budget analyses are done.

It was a horrible idea, of course, and it was scrapped. That imaginary $87 billion in savings, however, was part of what allowed Obama and congressional Democrats to pretend the law was "paid for."

Another abandoned revenue raiser in Obamacare was an absurd and intrusive tax hike. The "1099 provision" would have forced freelancers to file 1099s for almost any business transaction, such as buying equipment or hiring a repairman. Congress repealed that awful provision.

Obamacare's Medical Device Tax was repealed. I wrote in 2013 about another false pay-for that Obama delayed: "Obamacare was supposed to save money by cutting Medicare Advantage spending — cuts would have become apparent last autumn. But the law also allowed HHS to run 'demonstration programs' in Medicare, experiments to find new ways to improve care and reduce costs. So, Obama used most of that 'demonstration program' money to postpone Medicare Advantage cuts until after the 2012 elections."

And now, yet another Obamacare "pay-for" has been gutted by Biden. Check out this video from back in the day:

Got it? By nationalizing the student lending industry, which previously had federal guarantees for private banks, Obamacare would raise $58 billion in revenue over a decade.

Some Democrats promised even more. "Part of the Health Care and Education Affordability Reconciliation Act of 2010 will make key changes to the student loan industry," Sen. Tom Carper (D-DE) said. "This measure will save taxpayers nearly $70 billion over 10 years."

So to all the other ways in which this student loan bailout is objectionable, here is another one. It is yet another abandonment of the lies used to sell Obamacare. Of all the bogus claims that it paid for itself, this is only the latest to fall apart.


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Texan1211
Professor Principal
1  seeder  Texan1211    4 weeks ago

I wonder how much taxpayers will 'save' under the Biden-issued debt relief?

Should be interesting to hear, IF and WHEN Biden and his handlers decide to explain how all of it will magically be paid for.

 
 
 
magicschoolbusdropout
Freshman Principal
2  magicschoolbusdropout    4 weeks ago

showing that they never really intended for the bill to reduce healthcare spending or pay for itself.

Same reason they won't tell ANYONE how the "Student Forgiveness Program" will be paid for. 

IT's NOT PAID FOR ...... It's being "Billed to Tax Payers" (Probably with interest)......... at a later date. !

 
 
 
Texan1211
Professor Principal
2.1  seeder  Texan1211  replied to  magicschoolbusdropout @2    4 weeks ago

Just a bunch of gutless wonders refusing to answer a very simple question.

I sure hope voters ask their Congress-critters this question and demand answers.

 
 
 
magicschoolbusdropout
Freshman Principal
2.1.1  magicschoolbusdropout  replied to  Texan1211 @2.1    4 weeks ago
I sure hope voters ask their Congress-critters this question and demand answers.

Don't expect much from the Voters that are getting "Paid Off" to vote for Joey !

There's probably "Millions" of those little AOC Type dwarves that will make out from this.

 
 
 
Snuffy
Masters Guide
2.2  Snuffy  replied to  magicschoolbusdropout @2    4 weeks ago

The White House is saying that they are closing in on a $1.7T deficit reduction so they plan to just fold the cost of the loan forgiveness into the deficit (as they have "saved" so much money) so the plan is just to put the loan forgiveness on the national debt.  

 
 
 
magicschoolbusdropout
Freshman Principal
2.2.1  magicschoolbusdropout  replied to  Snuffy @2.2    4 weeks ago
so the plan is just to put the loan forgiveness on the national debt.  

Much better. 

Cheers !

256

 
 
 
Drinker of the Wry
Freshman Principal
2.2.2  Drinker of the Wry  replied to  Snuffy @2.2    4 weeks ago

Exactly, we are only going to spend around $1 trillion more than we take in in taxes this year and our US National debt is on around $30.5 trillion not counting the unfunded portion of SS and Medicare promises.  If you add those, then the debt is around $129 trillion or over $900,000 per taxpayer.  

Life is just a party
And parties weren't meant to last
 
 
 
Nerm_L
Professor Principal
3  Nerm_L    4 weeks ago

ObamaCon?  That does have a ring to it.

Obama sure held insurance company's feet to the fire.  And Wall Street owned medical providers have been crying all the way to the bank.

Democrats seem to believe that throwing more money at a problem lowers cost.  Of course that worked when deficits didn't cost anything.  Has anyone looked at the yields on Federal treasuries lately?

 
 

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