By Jennifer Parker

Mar 1, 2009 11:24am

Orszag: Energy Costs May Rise to Offset Health Care Reforms

During our exclusive "This Week" interview, Office of Management and Budget director Peter Orszag said the President’s $3.6-trillion budget proposal may increase energy costs to offset the costs of health care reforms.

Republicans have taken aim specifically at the revenues in the budget package, specifically the $600 billion the government will receive by capping carbon emissions.

Former GOP House Speaker Newt Gingrich blasted the proposal this week: "How dumb do they think we are that they can pretend that an energy tax isn’t an energy tax, and they can pretend that every retired American who uses electricity isn’t going to pay it, and every person in New Hampshire who uses heating oil isn’t going to pay it, and every person who drives a car isn’t going to pay it?" Gingrich said Friday at the CPAC conference.

Today Orszag agreed the capping of carbon emissions is going to increase energy rates. But he said Americans are going to be getting other benefits in the budget.

"I think we have to be — let’s be fair about this. Either you’re going to look at what — what is collected through the tax code and what’s returned through the tax code.  And on that basis, there’s a tax cut for 95 percent of Americans, or you have to go all in.  Let’s also count the benefits that families get through Pell Grants, the benefits that they’ll receive through constraining health care costs, the benefits that they get from weatherizing their homes, and so on.  All in, this budget makes the vast majority of American families much better off," he said.

Orszag also said the president was open to the idea of establishing some kind of commission on health care.

"It’s clear that we need some changes in the process," Orszag said.

"And let’s, let’s focus on that, because it is the key driver of those long-term deficits. That’s why we need to get reform done this year. We can make our health care system much more efficient, and that is the single most important thing we could do to get those long-term deficits under control."

–George Stephanopoulos

User Comments

I am saddened to see Carl Rove on the ABC Sunday morning program. You normally have a balance of political views; however having Carl Rove is too much for me.
Goodbye

Posted by: Harry Thomas | March 1, 2009, 11:50 am 11:50 am

The energy cost would rise without the health care proposal. Why, it has always risen for no reason, even if it’s a storm to bilk the american consumers. I will rise when we change our ways, for that one last “get rich” stance. At least the American people will be able to see a doctor without going bankrupted!!!!!!!!!!!!!!!!!! Before we got Nothing for paying higher cost for energy.

Posted by: sngeorgia | March 1, 2009, 12:02 pm 12:02 pm

I have watched This Week with George S. since its inception. . . I will NO longer watch. I welcome the exchange of opposing views , but I will not watch when ABC allows a criminal the platform to air his views . . at least NOT on the Roundtable. Karl Rove neither deserves nor warrants this exposeure. Thankyou for several GOOD years.
Sign me a
FORMER viewer
S. Groce
Asheville,NC

Posted by: S M Groce | March 1, 2009, 12:04 pm 12:04 pm

What I want to know is the break down of this tax…how much more per month is it going to cost each home. So many people struggle each month to pay their utilities, I can’t imagine what charging more is going to do to them.

Posted by: samhiguchi | March 1, 2009, 12:06 pm 12:06 pm

For 8 yrs nobody put Rove in his place. When he talks (shouts) over other guests, the least you or George Will can do is put him in his place!
Rove is a disgrace to America and the WSJ as well as ABC News that continue to provide a platform to him should be ashamed.

Posted by: Lee Gordon | March 1, 2009, 12:12 pm 12:12 pm

The Federal government is the reason that healthcare is a mess in the first place. It all started with the creation of Medicare. You can trace the deterioration of the system directly from that. It all started with how the government paid providers for Medicare patients. It was a mess that paid providers for certain expenses & capital items – but yet, still didn’t cover the costs of Medicare patients. That in turn created cost shifting to commercial insurance plans. HHS created the prospective payment system (PPS) – (DRG’s, base rates, weights, outliers and days stay that they’d pay for). The commercial insurers followed suit & jumped on the HMO bandwagon (even though HMO’s had been in existence in California for years). And it has just gotten worse every year since. The sad thing is that the people who are yearning for universal healthcare are probably the people who will be denied care because their cost/benefit ratio will be too high – the chance of a good outcome will be too low for the cost of the treatment. They will be in no better shape than they are now.

Posted by: ellsbells930 | March 1, 2009, 12:19 pm 12:19 pm

I am shocked and saddened to see that Karl Rove is now included in the Round Table. My blood pressure problem will not allow me to watch your program as long as that person is part of the group.It’s CBS Sunday Morning for me from now on!

Posted by: Carole Campbell | March 1, 2009, 12:37 pm 12:37 pm

The so called cost reduction to healhcare won’t happen because the cuts to Medicare and Medicaid will lead to hospitals doing worse and possibly going out of business or the hospitals will raise prices to offset those losses leading to higher healthcare costs for everyone in the long run; electric cars (when they are available)will also add to the problem because how much it will add to your electric bill as well. We are desperately going to need to come up with a way for neighborhoods to buy wind turbines so that when the turbines are paid off they can have free electricity until the turbines need to be replaced.

Posted by: Michael | March 1, 2009, 12:39 pm 12:39 pm

How can you guys have Karl Rove on your show? He is a criminal and you putting him on feeds the message that if you get away with crime, you can be a guest on a news show!!!

Posted by: erizin | March 1, 2009, 12:41 pm 12:41 pm

I liked the Orszag interview. But a caution to Obama & Co. The Library Party of Canada ran on a Carbon Tax last fall, and suffered for it. Even voters in liberal Canada wouldn’t go for it and realized that even with other offsets, they’d pay at the pumps and stores. And this was when the Canadian economy was still thought to be booming.

Posted by: Mark | March 1, 2009, 12:53 pm 12:53 pm

the CO2 cuts will increased out utilities by about 50-60% and then with the Bush tax gone we will pay 15% in taxs just how do you thing the DEM can sell this to the amrican people the old THe check is in the mail and so is the bill which is more then any check we will ever get “YOU CAN FOOL SOME OF THE PEOPLE SOME OF THE TIME BUT NOT ALL OF THE PEOPLE ALL OF THE TIME” BUT IT LOOKS LIKE THE DEM WILL JUST KEEP ON TRYING

Posted by: MARTIN FERRANTE | March 1, 2009, 1:01 pm 1:01 pm

So buy allowing companies to bribe us for the right to pollute we are ahem “saving” the enviroment. Huh? I realize Obama needs money for his welfare/warfare programs, but um NOBODY has ANY money!!! All of the companies he would tax have already relocated and/or outsourced their labor forces overseas to increase their profit margin. WHERE IS HE GOING TO GET THE MONEY!?! Oh right, YOU!!! How could I forget. Hey, can you spare some more taxes with unoffical unemployment at 13% and RISING, mind you there is no longer any money for unemployment benefits with the states bankrupt. Oh well, see you all in the Soup Kitchen line! (Oh wait, they can’t afford THAT either!)

Posted by: hmn... | March 1, 2009, 1:26 pm 1:26 pm

Here is your tax increase you will be MIDDLE class will be paying for Obama’s welfare state. Great. He gives $13 and will take what 100? you think in increased regressive taxes.

Posted by: ChicagBob | March 1, 2009, 1:47 pm 1:47 pm

hmn. EXACTLY >>>>
Obama worst president in history.

Posted by: ChicagBob | March 1, 2009, 1:50 pm 1:50 pm

I meant to say Obama most reckless president in history. 1 Trillion on 40 days and taxing the middle class and the upper class and the lower class WOW Arent you all proud? This is insane. More Tea Parties.

Posted by: ChicagBob | March 1, 2009, 1:51 pm 1:51 pm

MORE TEA PARTIES .>>>>>>
MORE TEA PARTIES.. <<<<<
Obama is out of control.

Posted by: ChicagBob | March 1, 2009, 1:55 pm 1:55 pm

If we think that health care is expensive now… just wait until it is free….

Posted by: Stan Brody | March 1, 2009, 2:01 pm 2:01 pm

Orszsag HE DOESNT cap and trade will be a tax on everyone. A totally regressive tax. You think it will cost you more than $13 a week?

Posted by: ChicagBob | March 1, 2009, 2:04 pm 2:04 pm

If we think that health care is expensive now… just wait until it is free…. >>> What government program runs as cheap as a free enterprise program? You think the 1000 hammer was a joke for NASA. You aint seen nothing yet. OBAMA Failed President with old failed Policies.
cap and trade will be a tax on everyone. and thats OK with Obama. Bet you cant wait for your electric to go up and your gas to go up and your heating to go up when times are tough. The most irresponsible President in History. Obama.

Posted by: ChicagBob | March 1, 2009, 2:07 pm 2:07 pm

I thought Obama said the carbon tax was to finance the Green energy grid to make the US a green energy marvel. Now his administration is say the carbon tax is so we can have health care? Obama and his administration can’t even keep their lies straight, can they? Anyway Americans look at their taxes it’s raised taxes on the American taxpayer and anybody who believes Obama when he says he will cut taxes for the lower tax paying Americans is a fool. The taxes paid by the upper 2% of wealthy Americans CANNOT foot the bill for all Obama’s spending. Average Americans WILL pay raised taxes one way or the other. I am disgusted by Obama’s lies. Two days before he unveils his mind blowingly expensive budget, he hosted a meeting on fiscal responsibility. What a joke. Why are Americans letting this lying slug get away with his lies. This is too sickening to be believed.

Posted by: Sandy | March 1, 2009, 3:40 pm 3:40 pm

The increasingly irrelevant minority has spoken…
But let’s see, after 25 years of reaganomics (cut taxes and like magic everything gets better) this nonsense met its reality test. If you want to be relevant come up with solutions for the probelms you created, not more of the same nonsense.
The US has historically benefitted from cheap energy and by postponing the cost of the environmental impact that resulted from its unsustainable use. Yes we need to start paying the real price for the energy we use. Stop whining and let the grown-up run things for a change.

Posted by: indjunjoe | March 1, 2009, 4:12 pm 4:12 pm

Rising energy is what started all this, sucking money out of Americans pockes. Making inflation take of BIG. Price controls should be put back in place for energy. Exxon aka (OPEC) has boasted of having the largest profits EVER of any conpany in the world. What’s wrong with this picture?

Posted by: drwfll | March 1, 2009, 4:26 pm 4:26 pm

“…more efficient health care…” = rationed health care.
The elderly will be shuffled aside because their needed health care dollars will not be efficiently spent.
I wish someone would present both sides of rationed health care as seen in Europe and Canada. People here have this idealized picture of “free” health care, but nothing is free. So many people opt out of their health benefits at work because they would rather spend the $$ on a new car, boat or whatever. I guess this way, people will be forced to pay for health care through higher fuel costs, etc, even if it’s rationed out by bureaucrats.

Posted by: justahousewife | March 1, 2009, 4:37 pm 4:37 pm

“…more efficient health care…” = rationed health care.
The elderly will be shuffled aside because their needed health care dollars will not be efficiently spent.
I wish someone would present both sides of rationed health care as seen in Europe and Canada. People here have this idealized picture of “free” health care, but nothing is free. So many people opt out of their health benefits at work because they would rather spend the $$ on a new car, boat or whatever. I guess this way, people will be forced to pay for health care through higher fuel costs, etc, even if it’s rationed out by bureaucrats.

Posted by: justahousewife | March 1, 2009, 4:37 pm 4:37 pm

indjunjoe: hey what’s wrong with the present system? You think under our current system “poor people” are just eeking by? I’m a doctor, and besides owing 150,000 in loans for medical school and going for years working in residency at 80-100 hrs per week, I have just now started a family and am making a living after having spent all that time living right above the poverty line (but doing just well thank you). What do I have to show for it? Live across the street for a section 8 jerk who sits home all day, gets peapod delivered, and sell marijuana out of his back yard. All while I am at work and my pregnant wife is at home with a one-year old. But you’re right, I feel so sorry for him that he doesn’t have more…

Posted by: Hawk | March 1, 2009, 4:41 pm 4:41 pm

Hey Hawk, my heart bleeds for you. That’s an anecdote reminiscent of Reagan. Let’s forget the anecdotes and allow some objectivity into the process of deciding our future.
I am reacting to all this “Obama is our worst president” BS that comes out of the irrelevant moronic Right. I have seen how the system has been rigged by those who ransack our wealth by the bilions. I’m not too concerned with small time criminals that would take advantage of a badly needed safety net, while they can. Why don’t you call the DEA on your so threatening neighbor?

Posted by: indjunjoe | March 1, 2009, 4:54 pm 4:54 pm

It’s funny! During the campaign Obama stressed more than once, Clean Coal Technology. Hmmm. Since the election, he has yet to mention a word of it.

Posted by: Politico II | March 1, 2009, 8:20 pm 8:20 pm

We all need to face the sad reality of exactly what has happened and that is an economy based on debt has collapsed. Throw in the greed of many including heads of Freddie and Fannie as well as politicians who raked in cash and favors
and we have what we have. All this hokus pocus that is being done might help in the short term but one day we will pay in the form of higher prices fon everything for sale. Simply moving money from one group to another will simply make all of us poorer for a longer period of time.

Posted by: david | March 1, 2009, 9:55 pm 9:55 pm

Relax……he gave you $13 more a week to pay for the extra $150 a month more you will pay for heating your home and driving to the unemployment office or food bank.

Posted by: vnvet69 | March 2, 2009, 8:31 am 8:31 am

Obama’s plans seems to change from the campaign but it still will end up costing all of us. Trying to change our energy systems will take time and will cost, but add to that “cap-n-trade” for “environment” there is extra taxes we will pay for health care. It is just one big tax scheme. No new large energy systems will be here any time soon but empty wallets will be.

Posted by: Jeff G | March 2, 2009, 8:56 am 8:56 am

There goes your middle class tax cut.

Posted by: Scuba | March 2, 2009, 10:13 am 10:13 am

What is funny is that you dont see many of the Obama voters on here defending his tax increases, why? I will tell you, because they are all just sitting around waiting for the check.

Posted by: billy bob | March 2, 2009, 10:55 am 10:55 am

Orszag is just another blind twerp.

Posted by: AmericanPie | March 2, 2009, 11:11 am 11:11 am

Energy cost increases are crushing to the middle and lower classes. Democrats are not just stupid, they are colossally stupid.
Obammunism is Communism.

Posted by: drjohn | March 2, 2009, 12:58 pm 12:58 pm

Obama is now badmouting the finest system of health care in the world.
He is creating a new crisis.
Universal health care failed in Oregon, Massachusetts and Hawaii. Obama now wants his turn to fail.

Posted by: drjohn | March 2, 2009, 1:03 pm 1:03 pm

AND THE TOP 5% WHO PAY MOST OF THE TAXES IN THIS COUNTRY ALREADY WILL GET SCREWED AGAIN!!

Posted by: MJ | March 2, 2009, 2:17 pm 2:17 pm

remember who is proposing this carbon tax in the US. It is the almighty, benificent, all-knowing Obama. According to main stream media he can do no wrong. everything he says and does is golden. (NOT!!)

Posted by: fedup | March 2, 2009, 2:22 pm 2:22 pm

I am totally confused by the new administration’s energy approach. they seem to be gambling too heavily on wind and solar energy, which are not steady supply of electricity. Also, there is no enough power grid to carry the electricity from wind and solar power to populated area. There is lack of mention of nuclear power , clean coal and offshore drilling in their discussion or plan. Instead they are talking about putting emission cap tax on current main power generation (>70%) by coal or natural gas, which will result in higher electricity rate to the consumers.

Posted by: austin | March 2, 2009, 2:40 pm 2:40 pm

I can’t stand Karl Rove, but this Administration and its programs of social engineering that will never grow the economy almost make me miss his antics. Which is pretty sad.

Posted by: Joe C. | March 2, 2009, 6:33 pm 6:33 pm

Dear Sandy. Please explain the connection between the Reagan/Bush tax cuts and the current economic crisis? Please explain how allowing people to keep their own income somehow causes an economic disaster, as if somehow taxing people creates economic stability in the first place. The answer is that there is no connection between tax custs and the housing bubble whatsoever – they are completely unrelated. The housing bubble was the result of Greenspan keeping interest rates to low for too long and our corrupt government pushing lenders to expand home ownership to people that couldn’t afford homes. Were banks greedy? Yes, because they knew that Freddia and Fannie were implicitly (now explicitly) backed by the Fed and the Fed wanted them to lend as much as possible per their political objectives. Tax cuts have absolutely NOTHING to do with the housing bubble, which is at the root of the current crisis.

Posted by: Brandon | March 3, 2009, 3:44 pm 3:44 pm

What the heck is Karl Rove doing at the Round Table? At the very least, you KNOW that he was unethical while sitting in a position of power. He does not bring ANY credibility with him. You have discretion when it come to your guest list. I am shocked you do not exercise the better part of it. I have never felt anyone shouldn’t be at that table, regardless of political persuasion. Until now.

Posted by: Julie Hermes | March 3, 2009, 7:13 pm 7:13 pm

With more and more peer-recognized scientist finally coming out to say that mans influence on global warming is so small as to be unmeasurable, why are they still acting as though it is fact! Because AlGore says so. He is a buffoon who is being made to retract at least a few of his idiotic statements. This is not about helping the environment- it is about exerting more control over our daily lives. The more money Obama takes from us through these backdoor taxes, more and more people will be forced into some reliance on him for their living. Please wake up people – he is a serial liar and does not have concern for you, only power to institute his socialist government. In any socialist society, there are few at the very top that live like kings off of the money they steal from everyone else. If you think that that sounds like the rich now, please consider that they made that money; they didn’t steal it to “help others”. Many of those “rich” people give huge amounts to charities. They won’t now since their tax bill is going to be horrendous. They also create jobs, but not in this environment. The economy would have recovered by summer without these huge pork bills, but now, it probably won’t recover for several years. That’s fine with Obama since that increases his power.

Posted by: Amy | March 4, 2009, 9:31 am 9:31 am

Karl Rove will also keep me away from your show now.
Karl Rove is one of the worst governmental elitists and liars ever to take power, who believes so much in American democracy that he used every method possible to steal the 2000 and 2008 elections — and he succeeded. He does not believe in the America most people cherish — “with liberty and justice for all” — but only in a fascist one-party Republican rule forever. He is all about elitism, the rich, the leadership class, and America controlled completely by conservatives.
I relish open political discourse and argument, but not from someone who has betrayed the truth so often by wrapping himself around the flag to sell his lies.

Posted by: John | March 4, 2009, 6:52 pm 6:52 pm

We are six weeks into not being any better off 3 years and 11 months from now. Obama sees the economy as the number one priority as well it is. But this spending of our money that we haven’t earned yet will sink his Presidency. I somehow believe that he wants to do good he just has too many strings and hands controlling his puppet presidency. FYI, China a relatively known socialist state does not impose corporate nor capitol gains on its citizens and corporations. We do. Welcome the United Socialist States of America. By the way, these Tea Parties being thrown across the nation are a good thing , although coverage by ABC,CBS,NBC,MSNBC will be nonexistent because it would influence the 6th grade comprehension levels of their viewership. We know from history what comes after a TEA Party.

Posted by: Tom | March 5, 2009, 7:33 pm 7:33 pm

If the energy companies buy the equipment to comply now and spread that cost to the consumer how much money is this cap going to generate? Or are they going to be pevented from compliance by price regulation? What is going to prevent energy rationing to reduce emmissions and cost. To bad for you if you cannot afford to move or purchase the “newest” energy efficent appliances.— These folks need to stop using regular folks as poker chips , you cannot bluff a power company Enron proved how easy it is to pull an ace. Basing revenue on a non compliance fine what brain came up with that one.

Posted by: tirekicker | March 6, 2009, 12:57 pm 12:57 pm

Leave a Reply

Do you have more information about this topic? If so, please click here to contact the editors of ABC News.