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Posts Tagged 'gop budget'

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Outrage Crucial as Trump-GOP Tax Scam Gets Dangerously Close to Passing the Senate

When President Trump and Congressional Republicans tried to repeal Obamacare earlier this year, the gross unfairness of taking healthcare away from 20-30 million Americans sparked outrage across the country.  Members of Congress got an angry earful from constituents every time they went back home.  Speaker Paul Ryan’s office got so many calls they had to shut the phone lines down.  Despite multiple attempts to kill the Affordable Care Act, Republicans repeatedly failed under a crush of public pressure.  Senators of conscience, including Sens. McCain, Murkowski, and Collins put principle over party and stood in opposition when it counted.  That is precisely the kind of outrage we need right now as the Trump/GOP tax scam rolls toward passage.

In the face of overwhelming evidence that the Republican plan is a shamelessly giveaway to the wealthy and big corporations, the public must continue to apply as much pressure as possible on elected representatives. (The Senate GOP bill even includes a provision repealing Obamacare’s mandate, and the opposition must rise with equal fervor.)  National Committee president Max Richtman sent a letter to the Senate yesterday urging that the bill be defeated.

Now is the time to seize on the opportunity to stop the Trump/GOP tax juggernaut before it wreaks permanent havoc on the lives of the poor, the sick, the working class, and the elderly. Yesterday the Senate Finance Committee advanced the bill to the floor on a 12-11 party-line vote. A handful of GOP Senators still oppose the plan, but the number is dwindling by the day and no doubt most of them will cave in the end. Meanwhile, in an effort to woo holdouts, Senate tax writers are making the bill even more generous to the wealthy.  

“[A] change demanded by… two unhappy senators — Ron Johnson of Wisconsin and Steve Daines of Montana — would further lower the tax bills of people like President Trump who earn most of their income through limited liability companies, partnerships and other ‘pass through’ businesses that do not withhold taxes on the money passed along to their owners.” – New York Times, 11/28/17

One could rightly ask, where is the outrage on the part of deficit hawks and so-called GOP moderates? What does it even mean to be a moderate who could vote for such a regressive piece of legislation?  Even Maine Senator Susan Collins is negotiating with tax writers instead of remaining firm in opposition.  Hopes that the requisite three GOP Senators will retain the courage to buck this bill are fading fast.

We need to look past the obvious distractions of Trump’s latest tweets and petty feuds and keep our eye on the ball.  The Trump/GOP tax scam is being served up for the benefit of billionaires and corporate titans in the party’s donor base.  Republicans have admitted as much:  big donations will dry up if they don’t get this done.

Months of careful and credible analysis has laid bare the truth about who will pay the price for this irresponsible legislation.  While the 1% get trillions in tax relief, many working class Americans will see their taxes go up in the next ten years:

Almost every independent evaluation of the House and Senate plans has found a $1 trillion tax cut for corporations and changes to the individual tax code that would benefit wealthier Americans while leading to millions of middle-class and lower-income people paying higher taxes than they do now. – Dylan Scott, Vox
Those earning under $10,000 would see their taxes rise by a cumulative $100 million; those earning between $10,000 and $20,000 would see taxes rise by $638 million; those earning between $20,000 and $30,000 would see taxes rise by almost $1.2 billion; and those earning between $30,000 and $40,000 would see taxes rise by $653 billion. – Politifact.

According to Politifact, some 40 million Americans would pay higher taxes in 2027 than they would today. Older Americans would be hit particularly hard.  Not only might their taxes go up if they are not fortunate enough to inhabit the upper income echelons, but the tax legislation would automatically trigger $25 billion in immediate cuts to Medicare.  The projected $1.5 trillion the tax cuts would add to the national debt would no doubt spur Republicans to pursue even deeper cuts to seniors’ earned benefits, leading to benefit cuts and higher eligibility ages for Medicare and Social Security.  Melissa Favreault of the nonpartisan Tax Policy Center warns:

Unless the tax cuts spur immense economic growth, which many prominent economists doubt based on decades of evidence, these cuts will harm future workers and Social Security and Medicare beneficiaries. – Melissa Favreault, Tax Policy Center

Not to mention that the Trump/GOP budget plan calls for over a trillion dollars in cuts to Medicaid, which millions of seniors rely on for long-term care.  Is it fair to punish current and future generations of seniors so the rich and multinational corporations can pocket trillions they don’t even need? 

Republican members of Congress continue to shill for the plan, perpetuating the lie that it provides significant tax relief for the middle class (it clearly doesn’t) or that it will grow the economy and create jobs (a myth disproven by history time and again).  The mainstream media focuses largely on the “horse race” aspect of the tax debate – who’s up, who’s down, how badly President Trump and the GOP need a “win.” Meanwhile, we know who loses, including large swaths of President Trump’s own base in the working class, which is perhaps the most egregious betrayal of all.  As Dylan Scott points out in Vox, candidate Trump promised to bring a new kind of populism to Washington.  “The forgotten men and women of our country will be forgotten no longer,” said the President at his inaugural.  

“Trump promised that the big, beautiful tax cut Republicans would pass would be a tax cut for the middle class. He went so far as to claim that he himself, allegedly worth $10 billion, would not benefit. He pledged that he wouldn’t be swayed by the Washington lobbying class.” – Dylan Scott, Vox

Those millions of working class Americans seem to have been all but forgotten now.  The President and the Republicans in Congress are clearly hoping that most voters are, in fact, distracted or looking the other way as they pull off one of the biggest transfers of wealth in U.S. history.  But we must not look the other way, or soon it will be too late.

 

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GOP Budget Resolution a "Lump of Coal" for Seniors, Middle Class

While the media have been largely consumed by the latest outrages from the White House, Republicans in Congress have been quietly working to radically redesign our tax code and cut trillions in spending that benefits ordinary Americans, including and especially seniors. With little fanfare, the Senate voted 51-49 last week to pass a cynical budget resolution that’s really a Trojan Horse for tax cuts for the wealthy and big corporations. Yesterday, the House followed suit by a vote of 216-212.  

Had a few votes gone the other way, these plans would have been stopped dead in their tracks, as we witnessed with Obamacare repeal.  But the public wasn’t paying much attention, and the pressure on Congress to vote in the public interest was nowhere near as intense.

Even if some of the more heinous budget cuts fall away, the resolution is an unsettling declaration of priorities that can only be described as mean-spirited and immoral.  As Dylan Scott keenly observes in Vox:

The budget stands as a vision of what the Republican majority wants to do, and perhaps would do if it had eight or nine more votes in the Senate. It suggests that basically every Republican in each chamber (the only senator opposed was Rand Paul, who wanted deeper cuts) is comfortable aligning himself or herself with an agenda that radically cuts the social safety net for… retirees and the middle class. – Dylan Scott in Vox, 10/26/17

The GOP budget and tax scheme, which leadership would like to pass before the holidays, has been rightly described as a “lump of coal for the middle class.”  Yes, the tax plan is a big, fat Christmas gift to the wealthy, wrapped in a package of distortions.  Despite President Trump’s disingenuous claim that it helps middle income earners, 80% of the tax savings goes to the wealthiest 1% of the American people.  The rest get only a trickle of tax relief.  

Tax policy that benefits the middle class, including deductions for state and local taxes, goes out the window in this plan.  So might existing exemptions for 401K contributions, currently set at $18,000 per year.  GOP leaders have talked about significantly reducing the amount of pre-tax contributions people can make, reportedly to $2,400 per year.  (The exact details are secret, of course, until the plan is unveiled on November 1st.)  The party of personal responsibility is actually proposing to penalize Americans for saving for retirement – as some 50 million of us now do to the tune of $67 billion in tax savings per year.

The GOP would pay for massive tax breaks for the rich by cutting essential safety net programs for seniors and other vulnerable Americans.  These are among the Scrooge-like proposals in the  budget plan:

*Cuts nearly $500 billion from Medicare by privatizing the program and raising the eligibility age.

*Cuts $1.3 trillion from Medicaid over ten years, jeopardizing long term care services and supports for the elderly.

*Cuts $653 in Supplemental Security Income (SSI) for some 8 million low-income seniors and people with disabilities.

*Will likely require cuts in in Older Americans Act programs (e.g., Meals on Wheels), home heating assistance for seniors, and research into diseases affecting the elderly, including Alzheimer’s and cancer.

Meanwhile, the supposedly budget-conscious GOP has voted to allow itself to deficit-fund $1.5 trillion of the tax cut package. As the hole in the deficit grows, Republicans will then be able to come after Americans’ earned benefits – Social Security and Medicare – to try to close the gap, even though Social Security and Medicare Part A are self-funded and don’t affect general revenues.  

Of course, the long-planned assault on Medicare has already begun – with new viability now that Republicans control all branches of government. The budget resolution contains oft-told prevarications about the program:

"Medicare spending is on an unsustainable course… Given this untenable situation, the budget resolution supports work by the authorizing committees to recommend legislative solutions extending Medicare's solvency in the near term, while pursuing policies that place the program on a sustainable long-term path." – GOP 2018 Budget Resolution

The way to strengthen Medicare now and for the future is to keep the Affordable Care Act in place (which is already saving Medicare hundreds of billions) and allow the government to negotiate prescription drug prices with drug companies, for starters. 

Because Congressional leadership is forcing reckless tax cuts through the reconciliation process (where measures can pass the Senate with a simple majority), Democrats will be unable to impede this cruel juggernaut.  As we saw in the Obamacare repeal battle, it will once again fall to a handful of Republicans of conscience to put the brakes on unfair tax and budget cuts.  But they will do so only if they hear loudly and clearly from all of us.


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House GOP Recklessly Pursues Privatization of Medicare in Budget Process

Congress is targeting the health and financial well-being of America’s seniors by making yet another attempt to privatize Medicare.   Yesterday the House Budget Committee passed the GOP’s FY 2018 budget resolution, which includes Speaker Paul Ryan’s “Medicare premium support” scheme – an innocuous name for turning time-tested senior health care coverage into “Coupon-Care.”  

The House budget blueprint slashes nearly $500 billion from Medicare over ten years and raises the eligibility age from 65 to 67 – along with gutting Medicaid and other social safety net programs for needy seniors.  

The Associated Press had a pithy summary of the painful cuts that the GOP proposes in its new budget:

“The plan, in theory at least, promises to balance the budget through unprecedented and unworkable cuts across the budget. It calls for turning this year's projected $700 billion or so deficit into a tiny $9 billion surplus by 2027. It would do so by slashing $5.4 trillion over the coming decade, including almost $500 billion from Medicare, $1.5 trillion from Medicaid and the Obama health law, along with enormous cuts to benefits such as federal employee pensions, food stamps, and tax credits for the working poor.” – Associated Press, 7/18/17

 National Committee President Max Richtman says that converting Medicare into a voucher program is an existential threat to the program itself. 

 “Over time, giving seniors vouchers to purchase health insurance would dramatically increase their out of pocket costs since the fixed amount of the voucher is unlikely to keep up with the rising costs of health care. And, as healthier seniors choose less costly private plans, the sicker and poorer seniors would remain in traditional Medicare, leading to untenable costs, diminished coverage, and an eventual demise of traditional Medicare, plain and simple.” – Max Richtman, NCPSSM President

Of course, raising the Medicare eligibility age from 65 to 67 as the House spending plan also proposes, is in itself a drastic benefit cut.

Undermining Medicare has been a long-held dream of fiscal conservatives. Their “premium support” proposal is a thinly veiled scheme to allow traditional Medicare to “wither on the vine,” as former House Speaker Newt Gingrich once put it.

Privatization is being sold as “improving customer choice,” but based on the way current Medicare Advantage plans work, private insurance will continue to offer fewer choices of doctors than traditional Medicare does.  If traditional Medicare is allowed to shrink and collapse, choice will disappear, too.

“Weakening Medicare is a politically perilous path for Republicans.  Recent polling indicates that large majorities of Americans across party lines prefer that Medicare be kept the way it is, not to mention that President Trump repeatedly promised to protect the program during the 2016 campaign.” – Max Richtman, NCPSSM President

Meanwhile, the National Committee strongly condemns other priorities of the House Republican budget resolution, as well.  The GOP budget resolution will mean: 

*Hundreds of billions in painful cuts to Medicaid, which seniors depend on for long-term care services and supports.

*Reaffirmation of a House rule that puts 11 million Social Security Disability Insurance (SSDI) beneficiaries at risk of a 7% benefit cut in 2028.

*Reductions to SSI (Supplemental Security Insurance), which provides cash assistance to low-income seniors and people with disabilities.

 *Caps on non-defense spending that will likely lead to devastating cuts to Older Americans Act programs and the Social Security Administration (SSA) operating budget.

 *Slashing of programs that benefit our nation’s veterans and deep cuts to spending on medical research (including cancer, diabetes, heart disease, and other conditions afflicting the elderly).

The savings from these devastating cuts will likely go to tax breaks for the wealthy.  Last year’s House Republican tax plan gave 99.6% of its benefits to the top one-percent of earners, with virtually nothing for middle and low income Americans.

 

 

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CBO Report on GOP Health Plan: More Bad News For Older Americans

National Committee President Max Richtman has rightly called the GOP Obamacare replacement “a triple whammy for seniors” because of its impacts on the private insurance market, Medicare, and Medicaid.  Yesterday’s report from the Congressional Budget Office confirms this grim assessment.  Of the 24 million Americans who will lose health coverage over the next decade, many will be seniors and “near-seniors” aged 50-64 who can least afford to go without much needed medical care.     

PRIVATE HEALTH INSURANCE

On the private health insurance front, the CBO projects that premiums will rise by more than 20% for older Americans.  This is mainly because the bill allows insurers to charge older customers up to 5 times more than younger ones.  At the same time, the GOP legislation yanks the financial rug from underneath older enrollees by replacing generous Obamacare subsidies with meager tax credits. According to today’s New York Times:

“The CBO estimates that the [net] price an average 64-year-old earning $26,500 would need to pay… would increase to $14,600 under the Republican plan.” – New York Times, 3/14/17 

The Times reports that older American’s out-of-pocket insurance costs would also rise:

“The hypothetical older customer who could pony up $14,600 for insurance under the GOP plan would also pay substantially more out of pocket for any health care services. And changes to the requirements for health plans mean that, across the board, deductibles and cost-sharing will increase.” – New York Times, 3/14/17

The reason for the word “hypothetical” is that most older Americans would not be able to afford $14,000 in premiums, let alone rising deductibles and co-pays.  Unable to pay these exorbitant prices, millions of “near seniors” (aged 50-64) will simply have to drop their health insurance during those crucial years before they are eligible for Medicare and need it most.

MEDICAID

The GOP phase-out of Obamacare’s Medicaid expansion will also hit near seniors in the lower income brackets particularly hard.  As a result of these changes, the CBO finds that people between 50 and 64 years old earning less than 200% of the federal poverty level would make up a larger share of the uninsured, from just over 10% under Obamacare to nearly 30% under the Republican replacement.   To re-iterate:  30% of near seniors earning a modest income will lose healthcare coverage from Medicaid.  That’s nearly one third of the lower income seniors who benefited from the Obamacare Medicaid expansion.  

The GOP bill also radically restructures Medicaid by ending guaranteed federal matching funds to the states and effectively cutting $880 billion from the program over ten years. Cash-strapped states will be compelled to compensate for this shortfall by cutting benefits and eligibility for Medicaid.  The CBO estimates that 14 million people will be forced off of Medicaid rolls by 2026. This is particularly bad news for seniors who rely on Medicaid to pay for long term care services and supports when their personal savings are depleted.  Those seniors will either have to rely on their financially-squeezed families to pay for long term care, or be forced to forgo the care they need.

MEDICARE

According to the CBO report, the Republican health plan achieves most of its budget savings by rescinding taxes on higher-income Americans.  Unfortunately for current and future retirees, those tax revenues were helping to keep the Medicare program on a sound financial footing.  By repealing a $117 billion tax on income above $200,000 a year, the GOP bill reduces the solvency of Medicare by 3 years. 

In a perversely self-fulfilling prophecy, the very budget hawks who insist that Medicare needs to be “reformed” because of its solvency problems are now making the program even less financially sound.  This opens the door for the “reformers” to argue even more vehemently for privatizing Medicare and turning it into a voucher program, which will hurt seniors with low or modest incomes.

REVERSE ROBIN HOOD

In reviewing the CBO analysis, a theme quickly emerges.  The Republican plan rips benefits away from lower income and older Americans while rewarding upper income earners with billions of dollars in tax breaks. It achieves federal budget savings on the backs of the people who can least afford to sacrifice.  The young, healthy and wealthy do better under the GOP plan.  With the triple assault on Obamacare, Medicaid, and Medicare, seniors and near seniors are left in the cold. As National Committee president Max Richtman likes to say, the Republicans’ message to older Americans seems to be, “You are going to be on your own and good luck… and I'm not even sure about the ‘good luck’ part.”

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We discussed Trumpcare's impact on older Americans on Facebook Live "Behind the Headlines."  Watch here.  

Read the National Committee's response to the CBO report here.

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Busting More Media Myths on Social Security

The latest GOP Debate provided a whopper of a media myth for NCPSSM's Equal Time to debunk.  

“Social Security is projected to run out of money within 20 years.”  

Dana Bash, CNN Congressional Correspondent. GOP Debate, March 10, 2016

 

Wrong.  Social Security will pay 79% of benefits in twenty years even if nothing is done to close the actuarial gap.  No one projects Social Security will run out of money; in fact, the only way the Social Security program can “run out of money” is if the American people all lose their jobs or quit contributing payroll taxes. However, the Social Security Trust Fund will be eventually be depleted (as it was designed to do) now that the baby boom generation is retiring. 

This distinction is not nitpicking or inconsequential.  A 21% benefit cut is not the same as “Social Security is projected to run out of money.”  Look at it this way, if CNN cut Dana Bash’s salary by 21% does that mean she has no income at all?  Of course not.  She hasn’t “run out of money” she’s taken a big cut.  No one wants that to happen to America’s seniors so a 21% benefit cut must be avoided.  However, a national correspondent should understand the difference between the Trust Fund, built up to handle the baby boomer bulge and the entire Social Security program, a benefit cut and “running out of money.”

This is an all too common error by journalists and one perpetuated by politicians who know the only way to get support for their plans to cut Social Security is to convince America the program is going down the tubes anyway.  Workers have enough reasons to worry about their fiscal futures. As long as some in the media continue to hawk this type of misinformation, a legitimate conversation about how to address the 21% shortfall will remain virtually impossible.  

 

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