The terms revenue and cost are important to any financial report. Revenue is the amount of money earned, while cost is the amount spent to earn that revenue. Subtract cost from revenue and you have net earnings. Together the two tell a lot about financial stability, but separate they tell very little. This may sound elementary, which is why it is a shame many Republicans fail to understand this.
In a recent report the CBO updated their analysis of the Affordable Care Act aka “Obamacare.” Republicans read the report as a glorious confirmation of what they knew all along – Obamacare will cost the nation billions and billions of dollars. Specifically they are referring to the new estimates of the ACA, which will cost $1.7 trillion as opposed to the original $940 billion. (There are reasons why this number increased, mostly because the reports cover different spans of time. That is a separate issue though) Republicans fail to either admit or realize the $1.7 trillion is only the cost side and without knowing the revenue side the number means very little. Republicans don’t mention this because revenue also went up and the projected overall net costs actually decreased. Interesting Republicans do not mention this.
This is one of the most misleading talking points put out by the Republican establishment. Or maybe it is their absolute disdain for the President and his policies that have put their preconceived notions above the facts.