Shut Down Days Away, CBO Says GOP Budget Would Increase Debt and Raise Medicare Costs

With a Friday deadline to avoid a government shutdown three days away, talks between Congressional Republicans and President Obama appeared to breakdown this afternoon. The talks seemed to reach an impasse over a deal to cut $33 billion or $40 billion from the 2012 operating budget. Earlier last week the former figure seemed likely.

All this comes on the heels of the CBO report detailing the alternative Republican budget [for FY12] would increase public debt to 70% of GDP by 2022.  That's higher than it would be if current projections are left alone.  In other words, the Republican alternative actually raises the federal debt.  This should come as no surprise since Republicans have no track record of ever doing anything except increasing the federal debt.

CBO also reported Medicare costs would be almost three times more expensive if the Republican plan is adopted than they would if just left alone.  The plan calls for Medicare to be replaced by a voucher system that would allow senior citizens to purchase health care from private insurers.  CBO clearly stated on page 4  the results would force senior citizens to pay more for health care.

"[T]he gradually increasing number of Medicare beneficiaries participating in the new premium support program would bear a much larger share of their health care costs than they would under the current program."

*Editor's Note of Clarity

The proposed GOP alternative budget is for fiscal year 2012 and has nothing to do with the current budget negotiations between the White House and congressional Republicans.