Subject: Neutering key arguments against passing health care reform through reconciliation.
To: Alan Grayson and all serious Democrats.
Date: 1/29/2010
Distribution: Universal.
Purpose: The purpose of this memo is to provide immediate access to undisputable facts that effectively undermine the following false assertions:
- Budget reconciliation is only useful for changing budget numbers in existing programs.
(hereafter "The Tweety Argument")
- Budget reconciliation won't work for health care reform because it will increase the deficit.
(hereafter "The Lieberman Lie")
The Tweety Argument
One week ago, (on January 22, 2010), Alan Grayson appeared on Hardball. During that interview, Chris Matthews repeatedly asserted with great vigor that the process of congressional budget reconciliation cannot be used to create new government programs. When Mr. Grayson asked Mr. Matthews to explain the basis of that claim, Mr. Matthews cited his "years of experience" working as a staff member for the Senate Budget Committee. When Mr. Grayson disputed the validity of Mr. Matthews' assertion, Mr. Matthews responded by repeatedly and zealously mocking Mr. Grayson for his assertion that budget reconciliation was a credible process to pass health care reform in Congress.
Matthews: What procedure do you know that Harry Reid doesn't know, that Dick Durbin doesn't know...the secret route to the Indies that only you know about?
Matthews:You can't create a program through reconciliation. No one has ever done one. Name a program. Just name me the program that has ever been created through reconciliation. Name one.
Matthews:Under reconciliation you are allowed to do two things. Change fiscal numbers. You are allowed to raise taxes or cut program spending. You can't create something.
Oh really?
FACT #1:
The 1997 Balanced Budget Act was passed through reconciliation when Republicans controlled both the House and the Senate. This Act created the State Children’s Health Care Program, known as SCHIP.
But wait! There's more!
FACT #2:
As the Heritage Foundation notes in it's backgrounder #2412, The Success of Medicare Advantage Plans: What Seniors Should Know,
Congress created the Medicare Plus Choice program as part of the Balanced Budget Act of 1997
That's not one program. That's TWO. What's next?
The Lieberman Lie
Opponents of the public option like Joe Lieberman (I-Aetna), claim the public option will increase the deficit.
If that was true, it would be a problem with or without St. Joe the Deceitful blessing it. Reconciliation cannot be used to increase the deficit beyond the budgetary window (warning PDF). However, as President Obama said in his State of the Union Address on January 27, 2010:
The approach we've taken [on health care] ...would reduce costs and premiums for millions of families and businesses. And according to the Congressional Budget Office -– the independent organization that both parties have cited as the official scorekeeper for Congress –- our approach would bring down the deficit by as much as $1 trillion over the next two decades.
FACT #3:
Even if you want to debate the amount of deficit reduction, CBO is on record as saying the House bill will not increase the deficit.
I don't know how to say it any more clearly:
Ta-Daa!
"The man said 'Ta-Daa!'"