CBO: Repealing Obamacare Would Cut Budget Deficit by Billions

Repealing Obamacare would reduce the federal budget deficit by $216 billion over the next decade and would generate a gross savings for the government of $1.65 billion, according to an estimate released Tuesday by the Senate Republican Policy Committee.

Republicans widely slammed a nonpartisan Congressional Budget Office report released last week because of its finding that repealing the Affordable Care Act would increase the deficit by as much as $353 billion over 10 years.

That determination was derived from what is known as a "conventional" examination of data by CBO researchers, the Committee explained in its own report on Tuesday. By contract, the Committee used what is known as "dynamic" scoring to analyze the effects of repeal.

"The main difference between the conventional and dynamic estimates of repeal is that the dynamic estimates account for people working and earning more in the absence of the law. Since the economy is larger, the federal government collects more revenue, which CBO estimates to be about $225 billion over the decade."

In short, the repeal would most likely boost the economy as more people sought employment to get health insurance.

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