“The Latest Hostage”: Fact-Checking Republicans On Social Security Disability
We’re going to be hearing a lot about the Social Security Disability program over the next few months. That’s because it is the latest “hostage” the Republicans have decided to use as leverage to get President Obama and Democrats to give them what they want. You can read more about all that here, but it comes down to this:
The largely overlooked change puts a new restriction on the routine transfer of tax revenues between the traditional Social Security retirement trust fund and the Social Security disability program. The transfers, known as reallocation, had historically been routine…
The House GOP’s rule change would still allow for a reallocation from the retirement fund to shore up the disability fund — but only if an accompanying proposal “improves the overall financial health of the combined Social Security Trust Funds,” per the rule…While that language is vague, experts say it would likely mean any reallocation would have to be balanced by new revenues or benefit cuts.
As you can see, its simply the GOP’s latest version of, “give us what we want, or else…”
In order to prime the pump, Republicans are already attempting to take on the “slackers” who rely on the disability program. Exhibit A: Sen. Rand Paul.
The first thing I’d like to point out is that – from these remarks – it appears as though Sen. Paul assumes that only those disabilities that are visible physically are real disabilities. We all know that is not true.
But PolitiFact did a thorough job of fact-checking Sen. Paul’s statements. And in so doing, provided us with a lot of information that is going to come in very handy as this whole hostage situation unfolds. On the overall accusations of wide-spread fraud, waste and abuse, here are the facts:
After an audit of disability insurance in 2013, the Government Accountability Office estimated that in fiscal year 2011, the Social Security Administration made $1.29 billion in potential cash benefit overpayments to about 36,000 individuals who were working and making more than $1,100 a month (the limit to receive disability benefits).
The 36,000 people receiving improper payments, while a lot on paper, represent about 0.4 percent of all beneficiaries, the report said.
There are other ways Social Security gives out benefits to those not deserving, but paying people already working is about 72 percent of the problem, according to the Social Security Administration. Factoring that in, the GAO estimates overpayments equaled $1.62 billion, or 1.27 percent of all disability benefits, in 2011. It’s a lot of money, but the disability program is a $128 billion program.
Got that? The level of fraud we’re talking about is 1.27% of benefits paid. As a friend of mine would say, “Now run and tell that!”
By: Nancy LeTourneau, Political Animal Blog, The Washington Monthly, January 17, 2015
“There Are Things In It That Scare Me”: For Republicans, Dishonesty Works And Deceit Instills Fear And Uncertainty
There isn’t a democracy on the planet in which even conservative candidates take aim at citizens’ access to health care. At a certain level, the very idea seems a little silly – a national candidate would presumably fail if he or she told their electorate, “Vote for me and I promise to leave some of you behind without access to basic medical care.”
But the United States is the exception. The Republican Party is the only major party in any major democracy that believes citizens are not entitled to medical care as a benefit of citizenship. Louisiana Gov. Bobby Jindal (R), as we discussed yesterday, want the GOP to abandon universal coverage as a worthwhile goal.
The Affordable Care Act may have extended new health security to tens of millions of families, but Jindal and Republicans believe voters should elect them to deliberately take that security away.
In theory, this should be a very tough sell. Why in the world would any Americans consider voting, on purpose, for a platform that could deliberately punish their own family?
The answer, I suspect, has a lot to do with the power of fear.
The New York Times recently published a fascinating piece on Kentucky’s triumphs in implementing the Affordable Care Act, and the article highlighted a woman named Amanda Mayhew. On paper, the piece presents Mayhew as a classic example of an “Obamacare” success story: thanks to the ACA, she been able to receive free, overdue dental care; she was able to see a dermatologist for free; and she received medication to treat depression for free. This one law has made a big, positive difference in her life.
And then came the twist.
“I don’t love Obamacare,” she said. “There are things in it that scare me and that I don’t agree with.”
For example, she said, she heard from news programs that the Affordable Care Act prohibited lifesaving care for elderly people with cancer.
Mayhew went on to tell the NYT that she’s “thankful” for her coverage, she would “gladly give up my insurance today if it meant that some of the things that are in the law were not in place.”
The problem, of course, is that Mayhew has been misled. Despite what she “heard from news programs,” the Affordable Care Act does not prohibit lifesaving care for elderly people with cancer. It actually does the opposite – which is why the law has received the enthusiastic support of the American Cancer Society and AARP.
The Times article featured a well-intentioned woman, whose heart clearly seems to be in the right place, who would sacrifice her own access to medical care in order to scrap provisions in the law that do not actually exist.
And that’s where Republican rhetoric comes into play. For years, the naive among us – a group that I include myself in – have marveled at the extraordinary lies that have been told about the Affordable Care Act. Why, we ask, would the right lie so brazenly to families who urgently need access to doctors and medicine?
Because dishonesty works. Deceit instills fear and uncertainty.
When Republican candidates vow to gut the American health care system and take Americans’ coverage away, there are plenty of voters who are willing to go along because they’re eager to undo those horrible provisions in the law they “heard about” on “news programs.”
The power of deceptive propaganda, backed by billionaires and their powerful elected allies, shouldn’t be underestimated.
The Kaiser Family Foundation recently found that 41% of the country still, even now, believes “a government panel” exists to “make decisions about end-of-life care for people on Medicare.” That’s two out of every five Americans who believe a ridiculous falsehood.
It’s not that these people are bad or dumb. It’s not that they want their neighbors or community to suffer. The issue here is that some wealthy and sophisticated folks launched a con job on the public, and the scam roped in a lot of victims.
Why else would politicians run on a platform of pushing millions of Americans into a position where they’re one ailment away from bankruptcy? It’s because they think they can get away with it – nice, generous folks will sacrifice their own security to prevent imaginary threats from hurting someone else.
By: Steve Benen, The Maddow Blog, January 13, 2015
“Betraying His Ignorance”: Mitch McConnell Blames The Slow Recovery On Regulation Because He Doesn’t Understand How The Economy Works
On CNN’s “State of the Union” Sunday, incoming Senate Majority Leader Mitch McConnell said that Republicans in the 114th Congress will focus on blocking environmental and healthcare regulations: “We need to do everything we can to try to rein in the regulatory onslaught, which is the principal reason that we haven’t had the kind of bounce-back after the 2008 recession that you would expect.” But that is exactly the wrong lesson to take from the slow recovery. Rather than laying the foundation for the GOP’s agenda, McConnell is betraying his ignorance on economic issues.
After the financial crisis struck, consumers cut back on their spending and businesses stopped investing. This created a shortfall in aggregate demand—people weren’t buying enough stuff. As consumers stopped buying goods and services, businesses were forced to fire workers, who then cut back their purchases—a vicious cycle. The government’s role is to fill the shortfall in demand, which it can do either through fiscal or monetary stimulus. We’ve done both in the past few years. The stimulus pumped hundreds of billions of dollars into the economy through targeted tax cuts and spending programs. The Federal Reserve cut short-term interest rates to zero to spur investment and used unconventional monetary policy tools like large-scale asset purchases to lower long-term rates. All of this helped avoid a second Great Depression. In fact, as Paul Krugman explained in Rolling Stone in October, the current recovery is actually above average compared to recoveries from past financial crises.
It’s understandable that McConnell would think that this recovery has undershot expectations. Economic growth has been slow and wages haven’t rebounded for the majority of Americans. In fact, only recently—more than six years after the Great Recession—have Americans become more upbeat about the recovery. In other words, this recovery may be above average, but that doesn’t mean it’s been good.
McConnell’s real sin Sunday was his belief that “regulatory onslaught” has been the “principal reason” for the slow recovery. Republicans have made this argument throughout the Obama presidency. If we would only cut government spending, eliminate red tape, and cut taxes for the rich, they say, the economy would thrive. The problem is that these are all supply-side solutions intended to increase productivity and prevent government from crowding out investment. Yet, the economy has faced a demand problem. The GOP’s job agenda, or what they call a jobs agenda anyway, does little to address it.
That doesn’t mean that their agenda will always be unresponsive to the economy’s issues. As the recovery continues and the economy nears full employment, the demand problems will be much less of an issue. Then, Republican supply-side proposals will look more like a legitimate plan to boost growth. Those ideas still may not make sense for other reasons, but at least they could be considered an actual economic platform. Throughout the Obama presidency, though, they have failed to offer such a platform. By suggesting that excessive regulations are the primary driver of the weak recovery, McConnell is only revealing that the GOP hasn’t learned anything during that time either.
By: Danny Vinik, The New Republic, January 10, 2015
“Pitting Retirees Against The Disabled”: GOP Manufacturing A Social Security Crisis To Threaten Benefits For Millions Of Disabled Americans
When conservatives who like to whine about “welfare” are forced to be more specific, some go after the traditional if significantly less generous TANF program of cash assistance, or Medicaid, or those receiving subsidies under Obamacare. But more often these days, they attack either Disability Insurance or SNAP, programs that have experienced large increases in eligibility because of the economy or demographic trends or both.
Congressional Republicans failed last year to force the inclusion of a major reduction in SNAP eligibility in the 2014 Farm Bill. But now they appear to be going after DI, through the half-clever mechanism of pitting beneficiaries against the larger universe of Social Security retirement recipients. Here’s a quick description of the ploy from TPM’s Dylan Scott:
The incoming GOP majority approved late Tuesday a new rule that experts say could provoke an unprecedented crisis that conservatives could use as leverage in upcoming debates over entitlement reform.
The largely overlooked change puts a new restriction on the routine transfer of tax revenues between the traditional Social Security retirement trust fund and the Social Security disability program. The transfers, known as reallocation, had historically been routine; the liberal Center for Budget and Policy Priorities said Tuesday that they had been made 11 times. The CBPP added that the disability insurance program “isn’t broken,” but the program has been strained by demographic trends that the reallocations are intended to address.
The House GOP’s rule change would still allow for a reallocation from the retirement fund to shore up the disability fund — but only if an accompanying proposal “improves the overall financial health of the combined Social Security Trust Funds,” per the rule, expected to be passed on Tuesday. While that language is vague, experts say it would likely mean any reallocation would have to be balanced by new revenues or benefit cuts.
I have zero doubt Republicans will describe this rules change, now that it’s getting attention, as a measure to “protect Social Security,” even though DI is part of the same system, and the ploy may actually be aimed at producing “entitlement reforms” affecting retiree benefits as well as disability eligibility. But Democrats, led by Elizabeth Warren, do seem to be all over this with unusual alacrity:
“It’s ridiculous – but not surprising – that on the very first day of the new Congress, Republicans are manufacturing a Social Security crisis to threaten benefits for millions of disabled Americans – including 233,260 in Massachusetts alone,” Warren said on Facebook. “We can’t turn our backs on the promises we’ve made to our families, friends, and neighbors who need our help the most. House Republicans should stop playing political games to put America’s most vulnerable at risk.”
So we’ll probably see leading Republicans take a low profile on the issue for a while, as their friends in the conservative chattering classes probably ratchet up the talk about the freeloading bums on DI.
By: Ed Kilgore, Contributing Animal Blog, The Washington Monthly, January 7, 2015
“America, We’re In Big Trouble!”: A ‘Governing Majority’ That Doesn’t Know How To Govern
Incoming Senate Majority Leader Mitch McConnell (R-Ky.) said the other day that he hopes the Republican-led Congress can prove to the electorate that his party can be a responsible “governing majority.” And on the surface, that’s a perfectly worthwhile goal.
But it’s been quite a few years since GOP policymakers actually tried to govern effectively, and there’s reason to believe the party no longer remembers how. This week, for example, Republican lawmakers will get right to work, pushing the Keystone oil pipeline and a measure to redefine a full-time worker under the Affordable Care Act. Jonathan Weisman had a good piece on the latter.
The House will take up legislation on Wednesday, the first major bill of the 114th Congress, that would change the definition of a full-time worker under the health law from one who works 30 hours a week to one who works 40 hours. A vote is scheduled for Thursday.
Weisman’s report did a nice job noting that even conservatives seem to realize this is a bad idea, with National Review’s Yuval Levin arguing over the weekend that the legislation “seems likely to be worse than doing nothing.”
Republicans, at some level, must understand this. Indeed, they pushed this exact same idea 11 months ago – in a bill they called the “Save American Workers Act” – and it was deemed ridiculous at the time.
An analysis of the bill, released Tuesday by the nonpartisan Congressional Budget Office and Joint Committee on Taxation, found that it would cause 1 million people to lose their employer-based insurance coverage. The report projected that more than 500,000 of them would end up getting coverage through Medicaid, the Children’s Health Care Program or the Obamacare exchanges. The rest, CBO and JCT said, would become uninsured.
The legislation would also lower the amount the federal government collects in penalties from businesses who don’t abide by the employer mandate. As a result, the report found, the deficit would go up by $74 billion over 10 years.
Jonathan Cohn explained a while back, “The Congressional Budget Office just taught the Republican Party a lesson. Governing is hard…. [T]hat’s the reality Obamacare’s critics are never willing to confront. They’re great at attacking Obamacare. But they’re lousy at coming up with alternatives that look better by comparison. There’s a reason for that. The downsides of Obamacare are real, but, in many cases, they make possible the upsides. Take away the former and the latter go away, too.”
Faced with this knowledge, the new, massive House Republican majority has effectively declared, “Well, let’s just pass it anyway.”
And what about Keystone? I’ll dig into this in more detail when the vote draws closer, but for now, I’m reminded of President Obama’s comments at his year-end press conference a few weeks ago:
“At issue in Keystone is not American oil. It is Canadian oil that is drawn out of tar sands in Canada. That oil currently is being shipped out through rail or trucks, and it would save Canadian oil companies and the Canadian oil industry an enormous amount of money if they could simply pipe it all the way through the United States down to the Gulf. Once that oil gets to the Gulf, it is then entering into the world market, and it would be sold all around the world.
“So there’s no – I won’t say ‘no’ – there is very little impact, nominal impact, on U.S. gas prices – what the average American consumer cares about – by having this pipeline come through. And sometimes the way this gets sold is, ‘Let’s get this oil and it’s going to come here.’ And the implication is, is that’s going to lower gas prices here in the United States. It’s not. There’s a global oil market. It’s very good for Canadian oil companies and it’s good for the Canadian oil industry, but it’s not going to be a huge benefit to U.S. consumers. It’s not even going to be a nominal benefit to U.S. consumers.
“Now, the construction of the pipeline itself will create probably a couple thousand jobs. Those are temporary jobs until the construction actually happens. There’s probably some additional jobs that can be created in the refining process down in the Gulf. Those aren’t completely insignificant – it’s just like any other project. But when you consider what we could be doing if we were rebuilding our roads and bridges around the country – something that Congress could authorize – we could probably create hundreds of thousands of jobs, or a million jobs. So if that’s the argument, there are a lot more direct ways to create well-paying Americans construction jobs.”
Again, the Republican Congress knows all of this. They know gas prices have already plummeted and that Keystone won’t push them any lower. They know that the project would create a few dozen permanent U.S. jobs. They know this is all about Canadian oil.
But this new “governing majority,” eager to prove how capable they are, have once again effectively declared, “Let’s pass it anyway” – whether it actually makes sense or not.
Republican lawmakers have had months – and by some measures, years – to come up with a policy agenda they’d implement once they controlled all of Congress. This, alas, is what they’ve come up with.
By: Steve Benen, The Maddow Blog, January 6, 2014
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