Obama budget creates $634 billion health care fund

At the Washington Post, Ceci Connolly reports President Obama’s proposed budget will create a $634 billion health care fund to partially pay for a vast expansion of the U.S. health system.

According to the Post, Obama’s health care overhaul will cost as much as $1 trillion over the next decade:

Obama would pay for the expansion by trimming tax breaks for the wealthy and tightening payments to insurers, hospitals and physicians, according to a senior administration official.

According to the Wall Street Journal, Obama’s spending cuts are also aimed at “curbing health-care spending overall”:

The cuts would affect a range of interests, including managed care companies, prescription drug manufacturers and hospitals.

The proposed tax change would limit the deductions available to people in the highest income tax brackets.

A trillion here a trillion there pretty soon. . . .