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WH: Stimulus Won’t Cost An Extra $75B

From the Washington Times:

White House rejects higher stimulus cost estimate

By Stephen Dinan

February 17, 2010

The White House is rejecting the official congressional scorekeeper’s estimate of how much the stimulus act will cost.

The Congressional Budget Office last month said the stimulus law will cost $862 billion over 10 years, or $75 billion more than projected a year ago, in part because unemployment has skyrocketed and the government is paying out more in unemployment checks.

But a senior administration official, briefing reporters Tuesday evening ahead of the release of a new report, said the White House rejects those assumptions about long-term unemployment, and said they are "holding to a recovery act at $787 billion."

Since Congress controls the money, CBO’s cost estimate will likely control any actions Congress takes, but with the bill already passed and the spending underway it’s mostly academic.

In its budget outlook CBO said $21 billion of the $75 billion increase came because unemployment had grown much higher than originally projected, and that meant the government was paying more unemployment benefits.

The rest of the increase came from higher food assistance payments and increased subsidies to help state and local governments pay interest on taxable government bonds they issue.

Funny how the Congressional Budget Office is all knowing and all seeing. Unless they say something the White House doesn’t want to hear.

But do note that the Obama administration is simply asserting that the CBO’s estimate is wrong.

The article does not cite any basis for their claim.

Are we supposed to believe that unemployment insurance hasn’t cost far more than was projected a year ago, after all of the unprecedented extensions Congress has passed?

But what does the White House care about facts?

This article was posted by Steve on Wednesday, February 17th, 2010. Comments are currently closed.

6 Responses to “WH: Stimulus Won’t Cost An Extra $75B”

  1. proreason says:

    We should just fire these radical right-wing accounting geeks that always rise up to contradict the White House, and just let the very trustworthy Obamy czars do the accounting.

  2. Chuckk says:

    Since when did the CBO start issuing numbers that were in any way close to reality? Has something changed there?

  3. Right of the People says:

    No, it will probably cost even more.

  4. GetBackJack says:

    Right People beat me to it.

    NEVER believe anything until it’s officially denied.

  5. RickCaird@CairdConsulting.com says:

    Any time this White House doesn’t like something it hears, it “rejects” it. They never seem to say why they are
    rejecting” it, though.

  6. JohnMG says:

    …..”But what does the White House care about facts?…….”

    This is an example of a run-on sentence. Allow me to edit.

    “But what does the White House care.”

    There. All done.

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