Remember Enron? It was $70-billion of phony bookkeeping. But that’s small stuff compared to how Washington, DC, cooks its books. One example is part of Obamacare, known as the CLASS Act. It’s an $86-billion piece of flimflam legislation.
The gimmick was to collect $86-billion in premiums for long-term health care, collecting premiums for years before ever paying benefits. They counted more years of income than of outgo, then claimed the program wouldn’t cost taxpayers anything.
Actuaries warned against the CLASS Act. Even the Democrat chairman of the Senate Budget Committee called it “a Ponzi scheme of the first order.” He was right.
Now here’s the kicker: Even though his own administration now admits that it will not work, President Obama says he doesn’t want it repealed. Maybe it’s so he can throw our tax dollars at it later.
From The Heritage Foundation, I’m Ernest Istook.