The public policy blog of the American Enterprise Institute

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Discussion: (3 comments)

  1. As I have posted before (perhaps I need to do it again), the CBO has a track record of being overoptimistic and unreliable in their future forecasts. Obviously these indicate examples where it is in this case:

    re: “slowdown in the rate of medical inflation, c) higher taxes, and the d) sequestration.”

    Obviously they wish to overturn sequestration, and obviously may free market analysts explain that higher tax rates may not necessarily lead to higher tax revenue if they impact growth, or change timing. Some say temporary higher tax revenue the past few months has been due to people accelerating capital gains and other income before tax rates change.

    In addition, you confuse medical inflation with medical spending. Medical inflation=medical prices have continued rising steadily. What hasn’t grown quite as quickly is medical spending, which indicates it may be partly due to the slow economy and higher unemployment. In addition part of it may be due to things like high deductible insurance policies leading to shopping around. Unfortunately Obamacare will limit the highest allowed deductible next year, and introduces other changes that are favors for special interest groups (regulatory capture) which are likely to lead to increased medical costs, as this page details:

  2. Shouldn’t under current law be in parenthesis?

  3. juandos

    better economy“…☺

    Yeah but on what planet?

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