The Budget Battles: Prosperity for Whom?
If the House Republican budget blueprint released on Tuesday is the “path to prosperity” that its title claims, it is hard to imagine what ruin would look like.
The plan would condemn millions to the ranks of the uninsured, raise health costs for seniors and renege on the obligation to keep poor children fed. It envisions lower taxes for the wealthy than even George W. Bush imagined: a permanent extension for his tax cuts, plus large permanent estate-tax cuts, a new business tax cut and a lower top income tax rate for the richest taxpayers.
Compared to current projections, spending on government programs would be cut by $4.3 trillion over 10 years, while tax revenues would go down by $4.2 trillion. So spending would be eviscerated, mainly to make room for continued tax cuts.
The deficit would be smaller, but at an unacceptable cost. Health care would be hardest hit, followed by nonsecurity discretionary spending — the sliver of the budget that encompasses annually appropriated programs. Those include education, scientific research, environmental preservation, investor protection, disease control, food safety, federal law enforcement and other areas that bear directly on the quality of Americans’ daily lives. The proposed cuts in such programs are $923 billion deeper than President Obama called for in his 2012 budget, which pushed the edge of what is politically possible.
Another big cut — $715 billion over 10 years — comes from mandatory spending other than Social Security and the big health care programs, a category that includes food stamps and federal retirement.
The blueprint does not call for any specific changes to Social Security, but, without explanation, it assumes a reduction of $1 trillion over 10 years in the program’s surplus. That would weaken the program by hastening the insolvency of Social Security.
When he unveiled this plan, Paul Ryan, a Republican of Wisconsin and the chairman of the House Budget Committee, declared, “This isn’t a budget. This is a cause.”
There is much truth in that. The blueprint is not a serious deficit reduction exercise for many reasons, the most important of which is that serious deficit reduction requires everything to be on the table, including tax increases. The plan released at the end of last year by the Obama deficit commission was one-third tax increases and two-thirds spending cuts. President Obama’s budget calls for a mix of tax cuts and tax increases, among the latter, letting high-end Bush tax cuts expire at the end of 2012. The Republican plan calls only for tax simplification. It would get rid of loopholes and reduce rates in a way that would not raise overall revenues but would invariably cut the tax bill of wealthy taxpayers for whom lower rates are more valuable than assorted loopholes.
The deficit is a serious problem, but the Ryan plan is not a serious answer. With its tax cuts above all, and spending cuts no matter the consequences, it is a recipe for more loud talk about the deficit but no real action.
By: Editorial, The New York Times, April 5, 2011
Cutting Through The Medicare Charade
In his Wall Street Journal op-ed today, House Budget Committee Chairman Paul Ryan (R-Wis.) said the Republican budget plan is focused on “saving Medicare.”
Of course, in this context, this is intended to strip the word “save” of all meaning. Even the Wall Street Journal yesterday noted that the GOP proposal “would essentially end Medicare,” which happens to be true.
Medicare is very easy to understand — it’s a popular system of socialized, single-payer health care for seniors. Beneficiaries love it, and the system works pretty well. The House Republican scheme for Medicare is a little more complicated, but still pretty straightforward — the GOP intends to privatize it. The resulting system would, ironically, look quite a bit like the Affordable Care Act, with seniors entering exchanges, where they would take a subsidy to purchase private insurance.
So, what’s the problem? Republicans intend to rig the game, scrapping the existing system and ending the guarantee of set benefits, while at the same giving beneficiaries a voucher that wouldn’t keep up with costs.
This isn’t “saving Medicare”; it’s ending Medicare and screwing over seniors.
Josh Marshall had a good piece on this yesterday, calling the plan “Medicare Phase-out legislation.”
The Ryan plan is to get rid of Medicare and in place of it give seniors a voucher to buy health care insurance from private insurers. Now, what if you can’t buy as much as insurance or as much care as you need? Well, start saving now or just too bad.
Now, by any reasonable standard, that’s getting rid of Medicare. Abolishing Medicare. Phasing it out. Whatever you want to call it. Medicare is this single payer program that guarantees seniors health care, as noted above. Ryan’s plan pushes seniors into the private markets and give them a voucher. That’s called getting rid of the program. There’s simply no ifs or caveats about. That’s not cuts or slowing of the growth. That’s abolishing the whole program. Saying anything else is a lie.
Yep.
I’d just add that some folks may have forgotten why Medicare was created in the first place. The nature of the human body is that ailments are more common as we get older, and profit-seeking insurance companies weren’t keen on covering those who cost so much more to cover. On average, folks who’ve lived more than six decades often have pre-existing conditions, and we know all too well what insurers think of those with pre-existing conditions.
Seniors relied on this system for many years, but it didn’t work. We created Medicare because relying on private insurers didn’t work.
And now Republicans want to roll back the clock.
By: Steve Benen, Washington Monthly, Political Animal, April 5, 2011
Government Shutdown: A Hostile Act Against A Civil Society By A “Band Of Rebels”
Shutting down the federal government is a hostile act against civil society.
The Civil War started 150 years ago in April 1861, and we are still getting over it, still talking about it, still writing about it. Some in the South have still not made peace with the end of the Civil War and hold fast to “heroes,” notably General Robert E. Lee. President Abraham Lincoln showed what he thought of Lee when he seized Arlington, Lee’s stately home and slave plantation across the Potomac River, and started burying the dead Union soldiers in the ground there.
Lincoln’s message could not be clearer: Leading an assault on the Union was not a Sunday picnic in the country. Serious consequences followed, hitting home.
Now we have a band of rebels—87 of them newcomers—in the House Republican majority, who are fixin’ for a fight. Spoiling to see the Capitol Dome go dark. Acting as if that’s the mission, the reason they crossed lines to come into the heart of the enemy. Washington is a staging ground for their defiant anger at the Union. The republic is under a new kind of siege.
If they have their way, the federal government will be closed this time next week, not what we need right now with so many American households hanging by a thread.
Now a few facts to concentrate the mind. First, the Tea Party is part of the problem. But hold the whole lot of House Republicans and their leaders responsible. If there are any grown-ups in the House, they are allowing their most radical element, unschooled freshmen, to dominate in a delicate showdown looming with the Senate and the White House.
Second, remember the Senate is controlled by a Democratic majority, a fact conveniently forgotten by the lower chamber, whose members often brag about the last election. The 2010 outcome was actually an evenly divided government, with a Democratic president to play his part in final outcomes, laws, and budgets. That’s the way it should be, if Senate Democrats and President Obama will only stand up to the rebels.
Third, the scope of the House Republican “defunding” demands is tantamount to waging war on our civil society as we know it. I don’t mean just NPR. Some of the priceless “commons” are at risk, in the proposed degradation of environmental programs. Social programs like family planning and women’s health are on the chopping block in an offensive against women’s health and reproductive rights. Chris Van Hollen, a House Democrat from Maryland, reads it right: Across the aisle is an extreme agenda to impose a right-wing ideology on town and country, using budget cuts as a vehicle.
Fourth and finally, whether $33 billion or $60 billion is cut from the budget, it will be too much. For the collective health of the nation, either number is like going on a diet when you’re starving. It’s really no use the two congressional chambers meeting in the middle, because the rebels can say they won the day—and they might be “right” in more ways than one. They skewed the debate by passing their draconian budget early and talking it up every day since.
What the GOP House freshmen lack in knowledge, they make up with sophomoric enthusiasm. They are so gung ho to camp out in the dark. Remembering Lincoln, don’t let the rebels take over and turn the lights out on us.
By: Jamie Stiehm, U.S. News and World Report, April 4, 2011
America Is Suffering The Effects Of Short-Sighted GOP Policies
I spent much of last week in a hospital in Cincinnati with my dad. He has Parkinson’s disease, which sucks. He’s home now, with my mom, brother, and sister doing all they can to care for him. And it hit home for me that we are living not only with the consequences of a horrible disease, but also with the consequences of decisions made in Washington over the last 10 years.
Where would we be with Parkinson’s treatment if George Bush hadn’t banned federal funding of embryonic stem cell research for eight precious years? A hell of a lot further along than we are.
Would my parents, a retired educator and a small businesswoman, be struggling to pay tens of thousands of dollars in out-of-pocket prescription drug costs if back in the ’90s Republicans had allowed Medicare to negotiate drug prices? Nope.
Would their retirement savings and those of millions of others have been hit so hard by the economic collapse if there had been meaningful regulation of Wall Street? No.
You really don’t need a crystal ball to see the future. Usually a rear view mirror will do just fine. We know what shortsighted Republican policies have done to this country. The Bush years are America’s own lost decade. For my parents, these losses are profound and personal, as they are for millions of others.
Now Republicans seem determined to make this yet another decade when America treads water or risks sinking further.
Right now, Republicans are blocking any meaningful effort to reduce our dependence on foreign oil and stop climate change in order to protect big oil and some big business.
Right now, while middle class families struggle mightily, Republicans are all about the mighty–going to the mat to preserve tax breaks for the wealthy and loopholes that let corporations pay literally zero taxes.
Right now, budget cuts are being demanded that will provide fewer children with Head Start, cut college loans, and gut Social Security and Medicare.
And right now, somewhere in America, a husband, a father, a mother, a wife is being told they have Parkinson’s. President Obama lifted the Bush ban soon after taking office, but we’ll never get those eight years back. For many of those suffering with Parkinson’s and other diseases that stem cell research could help, the stroke of George Bush’s pen signed away a measure of hope.
Past is precedent. We know our dependence on oil is killing us, so let’s start doing what we must now to end it. We know what happens in the future when kids get shut out of Head Start now, so let’s not do it. We know tax breaks for large corporations and the wealthy won’t strengthen the economy (we’ve tried that), so let’s repeal them. We know Social Security and Medicare will continue to be lifelines for millions, so let’s not cut them.
The hard-won historic change of the last two years has only just begun to undo the damage of the preceding eight. There is no turning back. We haven’t got a decade to lose. Because we know the wrong policies have real casualties.
My dad is one of them.
By: Greg Pinelo, U.S. News and World Report, March 31, 2011
Teaparty, More Dumb Than Clever
Although I’m not part of the Tea Party movement and I don’t share its values, I usually understand what its followers are trying to do. But their latest gambit on health care has me genuinely baffled.
The idea is to oppose the Affordable Care Act not in the Congress or the courts, where they’ve been fighting so far, but in the state legislatures. As you may recall, the Act calls upon states to create the new “exchanges,” through which individuals and small businesses will be able to buy regulated insurance policies at affordable prices. The simplest way to do that is for state legislatures to pass laws creating exchanges that conform to the Act’s standards. Several states have started that process already–and a few, like California, are well along in their efforts.
But Tea Party activists have been lobbying state lawmakers to vote against such measures and, in a few states, it looks like they’re succeeding. Politico’s Sarah Kliff has the story:
In South Carolina, tea party activists have been picking off Republican co-sponsors of a health exchange bill, getting even the committee chairman who would oversee the bill to turn against it.
A Montana legislator who ran on a tea party platform has successfully blocked multiple health exchange bills, persuading his colleagues to instead move forward with legislation that would specifically bar the state from setting up a marketplace.
And in Georgia, tea party protests forced Gov. Nathan Deal to shelve exchange legislation that the Legislature had worked on for months.
It’s a great idea for blocking the law, except for one small problem: The Affordable Care Act anticipates that some states might not create adequate exchanges. And the law is quite clear about what happens in those cases. The federal government takes over, creating and then, as necessary, managing the exchanges itself. In other words, if state lawmakers in Columbia, Helena, and Atlanta don’t build the exchanges, bureaucrats in Washington are going to do it for them.
I realize that blocking the exchange votes may have certain symbolic value–and, at least in the early going, it could complicate implementation simply by generating more chaos. (Georgia lawmakers, as the article suggests, had already put in a lot of time on theirs.) I also gather that some Tea Party activists believe that blocking state exchanges will strengthen the constitutional case against the law. Still, if even part of the law withstands both congressional repeal and court challenges, as seems likely, the long-term effect of this Tea Party effort seems pretty clear: It will mean even more, not less, federal control.
The irony here is that, throughout the health care debate, liberals like me wanted federal exchanges, in part because we feared states with reluctant or hostile elected officials would do a lousy job. That’s the way exchanges were set up in the House health care reform bill and, in January of 2010, many of us hoped the House version would prevail when the two chambers negotiated the final language in conference committee. But the conference negotiation never took place, because Scott Brown’s election eliminated the Democrats’ filibuster-proof majority. The House ended up passing the more conservative Senate bill, which had state exchanges, and that became the law.
Of course, not all Republicans agree with the Tea Party’s approach. In a previous article, for Politico Pro, Kliff interviewed several state officials who said they were setting up exchanges, notwithstanding their opposition to the law, precisely because it is the surest way to keep out the feds.
Len Nichols, the health care policy expert at George Mason University, thinks that approach makes a lot more sense, given their priorities:
Ironically, the only way to make PPACA a “federal takeover” is for states to do nothing. There is much state flexibility in the law, and much more could be sensibly negotiated and amended before 2014, but the strategy of repeal, do nothing and “get the government out of health care” will have exactly the opposite effect in those states that follow this path.
Maybe the Tea Party activists know something that neither Nichols nor I do. My bet, though, is that this effort is the policy equivalent of a temper tantrum, one that opponents of federalizing health care may come to regret.
By: Jonathan Cohn, The New Republic, March 31, 2011
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