Stephanie
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SNIP:
posted at 4:45 pm on April 1, 2012 by Steve Eggleston
On Thursday, Sen. Jeff Sessions (R-AL), the ranking member of the Senate Budget Committee, stated on the Senate floor that not only will ObamaCare cost $2.6 trillion in its first 10 years of full implementation, but that it will add $17 trillion to the nations long-term unfunded liabilities.
Before I continue, I do have to explain the concept of present value. Except for the $2.6 trillion 10-year value, the list of figures Sen. Sessions gives are in that concept. It is one of a few common measures of long-term finances, specifically one designed to measure what is required today to avoid (excepting earned interest, which in this case appears to be assumed to be roughly 3.25%) any future draw on financing over, in the case of the federal governments usage of the term, the next 75 years. Usually when it is invoked by the federal government, the value of legislated, but unfunded, claims on general-fund revenue, such as those contained in the Hospital Insurance Trust Fund and legislated mandates to fully-fund Medicare Parts B and D regardless of whether their dedicated funding sources are sufficient, are not included in that calculation. However, the Medicare Trustees include that, as well as the $2.5 trillion in Social Security Trust Funds, in their unfunded liability calculations from the budget perspective, and on the health-care side, so did Sen. Sessions.
Quoting from the video above:
all of it here with comments
Sen. Sessions – ObamaCare adds $17 trillion, or 1.9% of GDP, to nation’s unfunded liabilities « Hot Air
SNIP:
posted at 4:45 pm on April 1, 2012 by Steve Eggleston
On Thursday, Sen. Jeff Sessions (R-AL), the ranking member of the Senate Budget Committee, stated on the Senate floor that not only will ObamaCare cost $2.6 trillion in its first 10 years of full implementation, but that it will add $17 trillion to the nations long-term unfunded liabilities.
Before I continue, I do have to explain the concept of present value. Except for the $2.6 trillion 10-year value, the list of figures Sen. Sessions gives are in that concept. It is one of a few common measures of long-term finances, specifically one designed to measure what is required today to avoid (excepting earned interest, which in this case appears to be assumed to be roughly 3.25%) any future draw on financing over, in the case of the federal governments usage of the term, the next 75 years. Usually when it is invoked by the federal government, the value of legislated, but unfunded, claims on general-fund revenue, such as those contained in the Hospital Insurance Trust Fund and legislated mandates to fully-fund Medicare Parts B and D regardless of whether their dedicated funding sources are sufficient, are not included in that calculation. However, the Medicare Trustees include that, as well as the $2.5 trillion in Social Security Trust Funds, in their unfunded liability calculations from the budget perspective, and on the health-care side, so did Sen. Sessions.
Quoting from the video above:
all of it here with comments
Sen. Sessions – ObamaCare adds $17 trillion, or 1.9% of GDP, to nation’s unfunded liabilities « Hot Air