higher medicare taxes for wealthy people. steve rattner, seriously? seriously? it s the pot calling the kettle black. you live in a glass theater, ok? beautiful. move on from that. moving on from that. you also have penalties on the so-called cadillac taxes on people. you have fees on manufacturers and insurers. so a lot of taxes and fees on wealthier people and on the companies that are involved in the health care business. so go back to the 50%, which is obviously the biggest chunk of this. sounds like that may be a made-up number. nobody really knows what that number will be. it s totally a made-up number. it s the assumption that you can lower the rate of medicaid or medicare. medicare as you well know has tens of trillions of dollars of unfunded liables already. saving money on medicare to fund a new health care program does not solve the problems of medicare. right. let s talk about the revenue side of the sorry, the cost
from the penalties, the $695 that people are going to have to pay, in order to if they don t get health care themselves. but scoring is an art. the cbo, however, i think is a very responsible, nonpartisan organization. people lobby it all the time. as you pointed out, the 50% of savings from medicare is something we have no idea how it s going to be achieved. but let s look at the individual mandate. i know dr. dean, who i have a lot of respect for, says the individual mandate is not critical to the success of the health care plan. he may be right. but according to the cbo, there say cost if the individual mandate is lost. you end up with 16 million more people uninsured. but healthy people come out of the pool, and it drives up the cost for everybody else. so there s a projected by the cbo 15% increase in private health care premiums, which causes employers to drop insurance, as it gets more expensive, and so four million people come off or who have
95%. in wisconsin we have 95%. that s because they have a mandate. how can you say it s private health care when you really take a look at the true cost of obama care, when it really kicks in in 2016, it will be $2.4 trillion over that decade, and here is the chart. here is the real thing here. steve, you were talking about the revenue. do i get one? i think i have another one here, absolutely. thank you. now i m out of it. all right. but here is the deficit risk. because this thing is supposedly going to be paid for by taxes, fees, penalties, and then cuts to medicare, which you were talking about. where are those going to be achieved? if you just project the taxes, fees, and penalties at about $816 billion in that 10-year window, 2016 to 20-25, that s a deficit risk of $1.6 trillion when obama care really kicks in. it was an utter fiction that
up your first chart that talks about revenue and look at this 50%, because that 50% of savings is what we are debating right now. the 50% on medicare savings that you said before were based on quite a few assumptions that may not actually take place. it s based on simply an assumption that you can bend the cost curve, take a rate of growth of medicare increases and suddenly have it become lower. zeke can go through i m sure line-by-line how this would happen, but i think you d have to agree this is not proven fact. this is a set of assumptions. absolutely. whatever you want to call it. you remember because you were a new york times reporter at the time. you remember what david stockman called these. the magic asterisk. rosy scenario. first of all, they are not rosy scenarios. l in the last three major reforms to medicare, cbo has always underscored how much we have actually saved.
they are wild guesses. they are reasonable guesses. and how has cbo scored previous medicare bills in terms of cuts? it s always underestimated the amount of as we said in the past also, individual mandates in the past have been scored as costs. this time, the obama administration got a waiver. democrats got a waiver. so you don t even have that cost put in there. but i want to go back to something that zeke said, senator. it seems to me it s one of your great challenges with independence. and some of the courtesy offico don t like this, as long as the cbo can say they scored this, and actually obama care lowers the federal deficit in the long run, that seems to me to be a hard argument to beat if you re a small government conservative. it s a fiction. they game the cbo numbers. the cbo is forced to score what the administration and congress gives them to score. just take a look at history, though. i m beginning to actually look