I have mixed feelings about this. Making it budget neutral will inevitably water it down, but increases its chances of passing ... and surviving future Republican administrations. What do you think?
From the NY Times:
It has become the trillion-dollar question: can President Obama find that much in spending cuts and tax increases to keep his campaign promise to overhaul the health care system, without adding to already huge deficits? Mr. Obama and the Democrats running Congress are deeply split over the possibilities.
House and Senate leaders do not like his ideas but cannot agree on alternatives. Other proposals that could reduce health care spending would take too long to show savings for purposes of Congress’s budget scorekeeping, and many would require big investments initially, such as for research into cost-effective treatments.
Meanwhile, special interests like insurance companies, employers and even sugar beet and corn growers are on alert to oppose anything that could hurt them.
Adding to the pressure, Republicans are back to attacking Democrats as tax-and-spenders. Yet they have not proposed how to pay for their own, more modest health care proposals. Nor did they offset the cost of creating the Medicare prescription drug benefit six years ago when they controlled Congress and held the White House. Its projected deficits exceed the shortfall for all of Social Security over the next 75 years, according to the program’s 2009 trustees report.
For some time, lawmakers and lobbyists privately assumed Mr. Obama would not hold the fiscal line for a deficit-neutral bill. Instead, he has reinforced it. Legislation “must and will be paid for,” he said in a news conference on Tuesday.
Worries about the economy hardened Mr. Obama’s resolve, administration officials say. “There’s a concern that if Congress were to pass a big health care bill that was heavily deficit-financed, financial markets could react negatively, with higher interest rates that could deepen the recession,” said Robert Greenstein, the executive director of the liberal Center on Budget and Policy Priorities, which supports the administration’s goal of a deficit-neutral health care overhaul.
Even so, each idea to cut spending or raise taxes has political pitfalls. A review of the options — and how dug in the opponents are — shows just how hard it will be for Mr. Obama to reshape the health system. <Continue to read snapshots of the major proposals>
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