You Won't Believe How The Baucus Healthcare Bill Got Such A Good CBO Score

Max Baucus

We’ll admit that analysing and decoding Congressional Budget Office reports is not our forté — that’s for the DC wonks.

Still, we’re pretty stunned by Megan McArdle’s explanation of how the CBO determined that the Baucus healthcare bill will result in a deficit reduction.

Going by the fairly sketchy description, virtually all of the extra benefit appears to come from estimating that employers will see their health care costs fall, mostly because they put those workers into federally subsidized programs, pass the resulting savings along to their workers in the form of higher wages and salaries, and that the Treasury will thereby gain, at a rough guess, about $12-15 billion a year in tax revenues.

Really, that’s it?

Anyway, it probably doesn’t matter. There’s now a good chance this will be the law of the land.

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