CBO: We Have a Tax Problem, Not a Spending Problem

Source: http://www.flickr.com/photos/otto-yamamoto/

The non-partisan Congressional Budget Office has released its 2013 Long-Term Budget Outlook, and it has some great news. Specifically, CBO is predicting substantially lower healthcare spending this year and 25 years into the future. While last year CBO estimated that, “Federal spending for those [health care] programs would grow to 9.6 percent of GDP in 2037; in that year, 6.0 percent of GDP would be devoted to Medicare, and 3.6 percent would be spent on Medicaid, CHIP, and the exchange subsidies.”

This year, CBO projects, “Federal spending on the government’s major health care programs would grow to 8.0 percent in 2038; in that year, 4.9 percent of GDP would be devoted to spending on Medicare and 3.2 percent would be spent on Medicaid, CHIP, and the exchange subsidies.”