[Congressional Record Volume 140, Number 12 (Wednesday, February 9, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: February 9, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
               CBO REPORT ON THE CLINTON HEALTH CARE PLAN

 Mr. McCAIN. Mr. President, I am pleased that the Congressional 
Budget Office has maintained its credibility as an objective 
nonpartisan agency in its report assessing the Clinton health reform 
plan. The report concludes that the plan will increase the Federal 
deficit by over $74 billion from 1995-2000, contradicting the 
administration's contention that it will decrease the deficit by $58 
billion over that period. The report therefore supports what we have 
been saying all along--that the President's plan is inadequately 
financed. It will harm our economy.
  I am particularly pleased that the CBO report recognizes that truth-
in-budgeting requires that the Clinton plan must be considered on-
budget. If not, the American people would not have an accurate 
assessment of the economic effect of the plan. The report concludes 
that our Government will grow by about 20 percent as a result of the 
Clinton plan. It confirms what should be very clear--that, when the 
Government requires private entities to pay health insurance premiums, 
this is effectively a tax that must be considered as part of the 
Federal budget.
  Yet, President Clinton dismisses the CBO treatment of his plan as a 
gimmick by policy experts, and says that ``No serious person out here 
in the real world will be troubled by it.'' Well, many of my 
constituents in Arizona are very troubled by his proposed enormous and 
unprecedented growth in Government and the Federal debt. I am offended 
that the President does not consider them, or millions of other 
Americans who disagree with his approach, ``serious people.'' If 
anything, it is the President and his administration who are out of 
touch with serious real world people who believe that big Government is 
not the answer to our Nation's problems and that we must live within 
our means.
  There are aspects of the CBO report with which I differ. For example, 
I do not agree with the characterization that the difference between 
its deficit projection and the administration's projection is 
relatively ``small.'' A difference of $132 billion is not small. 
Similarly, I do not agree that the overall economic impact of the plan 
``might not be large.'' You cannot impose the equivalent of a large new 
payroll tax accompanied by a large increase in the deficit without 
adversely affecting the economy and employment. However, overall, the 
CBO should be commended for not caving in to administration pressure in 
its analysis of the Clinton plan.
  I hope that this CBO report marks the beginning of an honest, real 
world debate on the merits of different approaches to health care 
reform. Such a debate will demonstrate to the American people that our 
Republican market-oriented approach to reform will be best for our 
country.

                          ____________________