NRO has obtained a letter from CBO associate director Sandy Davis to Hill staffers summarizing new analysis on the government revenue/spending effects of Obamacare repeal. The analysis itself will be up on the CBO page presently, but here’s the letter with the relevant bit in bold:
To interested Hill staff:
CBO and the staff of the Joint Committee on Taxation (JCT) have not yet developed a detailed estimate of the budgetary impact of H.R. 2, the Repealing the Job-Killing Health Care Law Act, which would repeal the major health care legislation enacted in March 2010. Yesterday, we released a preliminary analysis of that legislation indicating that, over the 2012-2021 period, the effect of enacting H.R. 2 on the federal budget as a result of changes in direct spending and revenues is likely to be an increase in deficits in the vicinity of $230 billion, plus or minus the effects of forthcoming technical and economic changes to CBO’s and JCT’s projections for that period.
We have been asked to provide the revenue and direct spending components of that total. Extrapolating the estimated budgetary effects of the original health care legislation and accounting for the effects of subsequent legislation, CBO anticipates that enacting H.R. 2 would probably yield, for the 2012-2021 period, a reduction in revenues in the neighborhood of $770 billion and a reduction in outlays in the vicinity of $540 billion, plus or minus the effects of forthcoming technical and economic changes to CBO’s and JCT’s projections.
CBO will post a Director’s blog with this information on the CBO website shortly. Please let me know if you have any questions.
Sandy
Edward “Sandy” Davis
Associate Director for Legislative Affairs
Congressional Budget Office
Again, the CBO is saying repealing Obamacare would shrink the size of government by $770 billion over a ten-year period.