Quick Fact: Palin falsely suggested health reform would increase deficit, denied Obama cut taxes


Fox News contributor Sarah Palin falsely suggested in a January 28 Facebook post that Democrats' health care reform plans would increase the deficit and that President Obama has not cut taxes. In fact, the Congressional Budget Office (CBO) has estimated that the health care reform bills passed by both the House and Senate would reduce federal deficits through 2019 and beyond, and the recovery act signed into law by Obama included $288 billion in tax relief.

In response to State of the Union address, Palin suggests health reform would increase deficit, denies Obama cut taxes

From Palin's January 28 Facebook post:

[Obama] dared us to "let him know" if we have a better health care plan, but he refused to allow Republicans in on the negotiations or consider any ideas for real free market and patient-centered reforms. We've been "letting him know" our ideas for months from the town halls to the tea parties, but he isn't interested in listening. Instead he keeps making the nonsensical claim that his massive trillion-dollar health care bill won't increase the deficit.

Americans are suffering from job losses and lower wages, yet the president practically demanded applause when he mentioned tax cuts, as if allowing people to keep more of their own hard-earned money is an act of noblesse oblige. He claims that he cut taxes, but I must have missed that. I see his policies as paving the way for massive tax increases and inflation, which is the "hidden tax" that most hurts the poor and the elderly living on fixed incomes.

FACT: CBO estimated that health reform bills would reduce deficits over next 10 years and beyond

CBO: Senate bill yields "a net reduction in federal deficits of $132 billion" over 10 years. On December 19, 2009, CBO reported of the Senate bill incorporating the manager's amendment:

CBO and JCT estimate that the direct spending and revenue effects of enacting the Patient Protection and Affordable Care Act incorporating the manager's amendment would yield a net reduction in federal deficits of $132 billion over the 2010-2019 period.

CBO also estimated on December 20, 2009, that the bill will continue to reduce the deficit beyond the 10-year budget window that ends in 2019 "with a total effect during that decade that is in a broad range between one-quarter percent and one-half percent of GDP."

CBO estimated the House bill will result in $138 billion in deficit reduction through 2019. On November 20, 2009, CBO reported of the House health care reform legislation, "CBO and JCT now estimate that the legislation would yield a net reduction in deficits of $138 billion over the 10-year period." CBO also stated in its November 6 estimate that "[i]n the subsequent decade, the collective effect of its provisions would probably be slight reductions in federal budget deficits. Those estimates are all subject to substantial uncertainty."

FACT: The American Recovery and Reinvestment Act included $288 billion in tax relief

Recovery act included significant tax relief for individuals, families, and businesses. As Media Matters for America has noted, the recovery act contained $288 billion in tax relief, including the Making Work Pay tax credit, a two-year annual credit of $400 per individual or $800 for families. In addition, the recovery act included a temporary increase in the earned income tax credit, a temporary increase in the refundable portion of the child tax credit, an increase in the first-time homebuyer tax credit, and tax incentives for businesses.

Posted In
Economy, Taxes, Health Care
Sarah Palin
2010 State of the Union
We've changed our commenting system to Disqus.
Instructions for signing up and claiming your comment history are located here.
Updated rules for commenting are here.