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  • The Easiest Substitute for Defense Cuts: Obamacare

    In case no one connected the dots, a report this week from the Congressional Budget Office (CBO) held the solution to a serious problem plaguing Congress: How to replace the devastating spending cuts scheduled to carve up the Pentagon starting in January.

    Answer: Repeal Obamacare.

    If that sounds too simple, here’s the arithmetic.

    The gross spending for Obamacare’s insurance expansions, as shown in Table 4 of CBO’s updated estimate of the program, totals $1.4 trillion for the 2013–2021 period—the same stretch in which $1.2 trillion in across-the-board spending cuts known as “sequestration” would apply. That spending is already baked into CBO’s budget projections—the same baseline against which sequestration would be calculated.

    CBO’s Table 4 also shows $400 billion in net 2013–2021 tax hikes, part of the onerous “Taxmageddon” also slated to start in January. Thus, the net cost of Obamacare would be about $1 trillion for 2013–2021. That’s how much could be saved by cancelling the planned spending and taxes in the President’s government takeover of health care.

    Sequestration would slash $984 billion from federal spending through 2021, with half that amount gouged out of national defense—an unconscionable depletion of military resources that follows two rounds of previous reductions. (Another $169 billion of sequestration would come from debt service savings.)

    The cuts would shrink defense spending by about 10 percent through a crude, indiscriminate, and irresponsible mechanism. They must be replaced. What better substitute than two huge new entitlements that have not yet been implemented, that half the public doesn’t want, and that the government cannot afford? Take away Obamacare, and the entire sequestration is replaced almost dollar for dollar—without tax hikes.

    To those who would dismiss the idea as frivolous, consider: Is it any less serious than a commander in chief who to date has done nothing to prevent these reckless defense cuts? An Administration that has done little to prepare for the impact? A Senate leadership that would risk a recession to wring out an additional $1.4 trillion tax increase starting in 2013?

    The Heritage Foundation previously listed the top five reasons for repealing Obamacare: (1) to stop adding deficits and debt, (2) to help prevent Taxmageddon, (3) to protect religious freedom, (4) to keep health care decisions with doctors and patients, and (5) to clear the way for patient-centered reform. Now make it an even half-dozen: (6) repeal Obamacare, and prevent an indefensible sequestration.

    Posted in Featured, Obamacare [slideshow_deploy]

    4 Responses to The Easiest Substitute for Defense Cuts: Obamacare

    1. @ReformedRep says:

      Do you Heritage guys ever actually use facts?

    2. John says:

      Brilliant. Lets increase defense spending and cut ObamaCare.

    3. Lloyd Scallan says:

      One very important point the author fails to address is the fact that the gutless Republicans in Congress agreed to the Obama/Democrats sequestration ploy. Now, at the eleventh hour, they want to undo what they've done after the smoke has cleared. This bunch of Republicans will never learn. They will continue to be led around by the balls until America is lost to the Obama socialist agenda.

    4. Wes in the midwest says:

      No one is talking about the endgame result of cutting a trillion dollars out of the military.
      Let's talk about the bases that will be closed and the economic effect it will have on all the cities where those bases are located. Bringing all those soldiers back into the job market and does anyone really believe that it will not affect the national security of the country?

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