|00:00:00||CUT IN MEDICARE BENEFITS TOTALING $400 BILLION.|
|00:00:09||THAT MONEY WAS USED TO FUND THE NEW HEALTH CARE BILL BY THE U.|
|00:00:13||S. TREASURY, AN ENTIRELY NEW PROGRAM.|
|00:00:18||BUT IT'S MEDICARE MONEY.|
|00:00:20||IT'S NOT THE TREASURY'S MONEY.|
|00:00:25||MEDICARE HAS TRUSTEES.|
|00:00:27||MEDICARE LOANED THE MONEY TO THE U.|
|00:00:29||S. TREASURY. IT WAS BORROWED MONEY THAT'S USED TO FUND THIS BILL, NOT MONEY THAT CAME IN NEW AND FREE OF CHARGE.|
|00:00:39||AND SINCE MEDICARE IS GOING IN TO DEFAULT AND GOING TO CLAIM ITS DEBT IN A FEW YEARS, THE FEDERAL GOVERNMENT IS SIMP GOING TO HAVE TO EITHER RAISE TAXES, CUT SPENDING SOMEWHERE ELSE OR MORE LIKELY CONVERT THE BORROWING FROM MEDICARE, BORROW MONEY ON THE OPEN MARKET FROM CHINA AND OTHER PLACES AND THEN PAY MEDICARE BACK.|
|00:00:59||SO IT'S REALLY, AS THE C.|
|00:01:01||B.O. DIRECTOR TOLD ME IN A LETTER, DECEMBER 23, THE NIGHT BEFORE WE VOTED, YOU'RE DOUBLE COUNTING THE MONEY.|
|00:01:10||NO WONDER THIS COUNTRY IS GOING BROKE.|
|00:01:14||THIS IS, THIS ISN'T EXTRA MONEY.|
|00:01:17||HALF OF THE ORIGINAL ESTIMATE OF THE BILL, $900 BILLION, WAS FUNDED BY BORROWED MONEY FROM MEDICARE.|
|00:01:26||AND THIS IS HOW THIS COUNTRY IS SURGING IN ITS DEBT AND WHY WE WERE IN DANGER OF THE ENTIRE ECONOMY ENTERING INTO COLLAPSE.|
|00:01:35||MR. JOHNSON: DO YOU BELIEVE THAT THOSE MEDICARE SAVINGS WILL ACTUALLY BE REALIZEED?|
Mr. SESSIONS. Yes.
As a part of the funding for the ObamaCare legislation, there was an increase in Medicare taxes and a cut in Medicare benefits totaling $400 billion. That money was used to fund the new health care bill by the U.S. Treasury, an entirely new program. But it is Medicare's money. It is not the Treasury's money. Medicare has trustees. Medicare loaned the money to the U.S. Treasury. It was borrowed money that was used to fund this bill, not money that came in new and free of charge. Since Medicare is going into default and going to claim its debt in a few years, the Federal Government is simply going to have to either raise taxes, cut spending somewhere else or, more likely, convert the borrowing from Medicare, borrow money on the open market from China and other places, and then pay Medicare back.
It is, as the CBO Director told me in a letter, December 23, the night before we voted: You are double counting the money.
No wonder this country is going broke. This isn't extra money. Half the original estimate of the bill, $900 billion, was funded by borrowed money from Medicare. This is how this country is surging in its debt and why we are in danger of the entire economy entering into collapse.