What Romney and Ryan are really planning to do…

October 7, 2012 at 5:47 pm (Uncategorized) (, , , , , , , , , , , )

Both Romney and his running-mate have repeatedly stated that their intent is to cut taxes 20% for everybody who pays federal income tax. The cost of such a cut over a ten-year period is approximately $5 trillion, yet Romney now denies having ever said anything about this tax cut.

Both Romney and Ryan say that these cuts would be deficit neutral because, at the same time, their plan would eliminate certain unspecified loopholes and write-offs currently in the tax code. The problem is, even if they eliminated every single write-off, including charitable donations and home mortgage interest, it still wouldn’t come close to covering the cost of the $5 trillion tax cut.

HOWEVER, they also say that they would increase revenue by “broadening the tax base”. The only way to interpret this is that they intend to tax low and middle income families who, until now, have no earned enough to qualify for paying federal income tax. Therefore, their stated intent is to cut taxes on the wealthiest Americans and raise taxes on the middle class. You can’t get around that.

By the way, cutting taxes does NOT stimulate economic growth. In fact, quite the opposite is true. Low taxes encourage profit-taking. Periods of higher tax rates show more re-investment. Business owners take less profit out of their companies if they know they’re going to pay higher taxes on that income. In any case, the last eleven years has provided ample proof that tax cuts boost nothing but the wealth of the top 1% of the population. 93% of all gains in the economy over the last two years have accrued to that small group of highly fortunate people.

Romney has also stated numerous times that he wants to increase defense spending by a $1 trillion over the next ten years and $2 trillion over the next 20 years. He would also add more than 100,000 more personnel to the armed forces. He has vowed to do this despite the fact that the Pentagon has said it doesn’t need the additional people or extra money. Romney just wants to be seen as a pro-military leader by his right-wing base. It is a completely disingenuous position.

All that said, I also have doubts about President Obama’s debating skills (although I don’t know what that has to do with being President of the United States). I wish he had been more energetic and assertive in the debate. I also wish that he called Romney on all of his lies and half-truths. That was a major mistake.

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Paul Ryan’s Lies

October 7, 2012 at 5:36 pm (Uncategorized) (, , , , , , , , , )

Ryan’s speech was a well-written, well-executed pack of lies. This is the same guy who voted FOR every single one of George W. Bush’s big spending policies — both unfunded wars, all of the unpaid for tax cuts, the Medicare Part D boondoggle for Big Pharma, and TARP. Yet HE’S calling Obama a big government spender. (By the way, all of these policy decisions continue to contribute billions to the national debt every year. They didn’t just go away when George W. Bush left office).

Ryan stated that Obama took $716B out of Medicare and gave it “too someone else”. Two responses: First, Obama SAVED $716B in Medicare by eliminating waste and fraud, and discontinuing the tax-payer funded subsidies to private insurance companies that were “administering” the Medicare Advantage program; Second, Obama used that savings to close the drug “donut hole” for seniors and having wellness visits covered. Mr. Ryan’s plan also cuts $716B out of Medicare, but he uses that money to help pay for tax cuts for the wealthy.

Ryan’s plan, which Mitt Romney has embraced, gives seniors the “option” of using “premium support” (vouchers) to go out and buy their own insurance from private insurance companies. This assumes that seniors could even find an insurance company that would be willing to give them coverage when they are older and more likely to become ill or injured. If they could find such a company, it would cost them an average of $6500 out-of-pocket to get coverage equal to what they currently have with Medicare. Of course, just by offering this option, Ryan strangles an already threatened Medicare program by taking people out of the mandated system. The obvious objective here is to end Medicare for EVERYBODY.

Ryan also took a shot at Obama for walking away from the Simpson Bowles Commission. This remark was the height of hypocrisy as Ryan himself turned his back on the commission’s recommendation to reduce the debt in a balanced fashion by cutting spending AND increasing revenue by raising taxes. Obama walked away from it because he knew the House would NEVER pass it. Subsequently, Obama asked congressional leaders to form the Super Committee, which the Republicans in Congress agreed to follow and which they are now threatening to back out on.

Ryan’s entire speech was riddled with falsehoods and half-truths and it made me sick every time that audience cheered what it was hearing. These people are supposed to be well-educated, moderately well-informed adults, yet they were jubilant about the load of garbage Ryan was feeding them.

“A downgraded America.” Ryan blamed the president for the nation’s credit downgrade in August 2011 after Republicans threatened to allow the government to default on its debt for the first time in history. But the ratings agency explicitly blamed “Republicans saying that they refuse to accept any tax increases as part of a larger deal.”

“More debt than any other president before him, and more than all the troubled governments of Europe combined.” Romney has made the almost identical claim, that Obama has amassed more debt “as almost all of the other presidents combined.” But their mathdoesn’t add up: when Obama took office, the national debt was $10.626 trillion. It has increased to slightly above $15 trillion.

Shuttered General Motors plant is “one more broken promise.” Ryan described a GM plant that closed down in his hometown, Janesville, Wisconsin, and blamed Obama for breaking his promise to keep the plant open when he visited during his campaign. But Obama never made that promise, and the plant shut down in December 2008, before Obama even took office.

“The greatest of all responsibilities is that of the strong to protect the weak.” Ryan closed the speech with an invocation of social responsibility, saying, “The truest measure of any society is how it treats those who cannot defend or care for themselves.” However, numerous clergy members have condemned Ryan’s budget plan as “cruel,” and “an immoral disaster” because of its devastating cuts in social programs the poor and sick rely on. Meanwhile, Ryan would giveultra-rich individuals and corporations $3 trillion in tax breaks.

Finally, the recent ad being run by the Romney/Ryan campaign asserts that President Obama took the job requirement out of the welfare reform law that was passed during the Clinton administration. It has been debunked by every fact checking organization on the net and several major newspapers, yet the RNC has doubled down and continues to run the TV spot. Clearly, the decision has been made by the RNC that lying is perfectly acceptable as long as it works. Unfortunately, it does appear to be working in a couple of crucial swing states. Again, this demonstrates a willingness by some people to believe any lie that is spoken against this president, no matter how blatant or disproven by facts.

Obama 2012 — Because the alternative is unthinkable.

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Paul Ryan : A radical ideologue or just plain stupid?

May 26, 2011 at 7:55 pm (Uncategorized) (, , , , , , , , , , , , )

In a recent CNN interview, Rep. Paul Ryan (R-Wisconsin) accused opponents of his alleged “Path to Prosperity” of being “willing to lie and demagogue Medicare and scare seniors”. This is the same man who has been screaming the sky is falling for the last two years and that we have to radically reduce the deficit RIGHT NOW, or the country will suddenly fall into an economic abyss. He doesn’t see the content of his plan as being the cause for resistance. He claims that it’s a “marketing problem”. To clarify things, he says, “Our budget’s so clear. It doesn’t change benefits for people over the age of 55 and it saves Medicare for the next generation”. Clearly, his plan does not “save” Medicare for anybody. It is a classic example of privatization.

Let’s first examine what Ryan claims to be his primary motivation: the deficit crisis. We should not allow Ryan’s alarmist rhetoric to panic us. We have some economic problems, but we’re not Greece. Deficits should decline markedly over the next few years, and Social Security and Medicare will not devour us. Over the last 3 years, the federal deficit has been about 9% to 10% of GDP. By historical standards, that’s very large, but it wasn’t the result of profligate spending. It was caused by the worst recession in +70 years. While it is happening slowly, the economy has been steadily recovering since June 2009. Barring some catastrophe, the effects of recession should fade and the economy should start showing more robust growth. (Certainly, we’ve already seen this in the American auto industy). This means greatly increased revenues and less spending on things like unemployment benefits, food stamps, Medicaid rises and financial bailouts. Plus, we have the expiration of the Bush tax cuts for the wealthy to look forward to, as long as Republicans don’t try to extort another extension.

The bottom line is that, if we do NOTHING, the deficit as a percentage of GDP should go from 10% to about 3% by 2014. Using Medicare as an instrument of fear to justify radical change, which is what Ryan has been doing, is more than a little dishonest. In 2010, Medicare spending (less premiums paid by beneficiaries) was 3.1% of GDP. In 2021, the CBO projects it will be 3.6%, an increase of only 0.5 percent. In other words, this budgetary “monster” which Ryan claims is going to ruin the American way of life will increase its share of the national economy by about 1%. This amounts to less than half the cost of the Bush tax cuts.

This is not a long-term fiscal emergency; it’s what you’d expect after the deepest recession since the Great Depression. So Rep. Ryan’s plan to privatize Medicare is not only extreme, it is wholly unnecessary. Ryan’s Medicare plan would force those who become beneficiaries starting in 2021 to more than double their out-of-pocket spending. Some estimates for this out-of-pocket increase are as high as $7,500/year. But that’s not the worst thing about his plan.

What congressional conservatives have wanted to do for decades is wipe out the entitlements: Social Security, Medicare and Medicaid. They don’t view these programs as vital safety nets for seniors which have helped lift them out of poverty over the last 70 years. They see them as evil ideology; socialism.; an obstacle to states’ rights, which they have been fighting for since the mid-19th century. They know that the quickest way to kill these programs is to privatize them. Put for-profit companies in charge and let the so-called free market do the rest. They realize that Medicare, as a government program, operates on about 6% overhead, while private insurance companies have overhead costs which are six times that. On top of that, private insurers have to show their investors a profit every year. So, what we’re looking at here is a plan that will drastically reduce coverage, while allowing premiums and deductibles to continue to escalate at warp speed. Medicare, as a vital service to seniors, will become a shell of its former self. All the money people have paid into Medicare during their working years will now be handed over to private insurance companies, with more than 1/3 going to pay for corporate overhead. Then, insurance companies will fight tooth & nail to hold onto the other 2/3s by denying claims and greatly reducing coverages. That’s how for-profit companies work.

So, the question remains: Is Paul Ryan consciously trying to destroy Medicare in order to satisfy his ideologically-driven hatred of the federal government, or is he just an ignoramus who actually believes the growth predictions that his plan borrowed from The Heritage Foundation? Does he actually believe that he’s saving Medicare for the next generation? From what I can tell, Paul Ryan is not a stupid man. But his common sense and humanity are definitely being held hostage by his extreme right-wing ideology. I don’t think he really cares about the deficit at all. If he did, he wouldn’t be so dead set against letting the Bush tax cut for the wealthy expire, and he certainly wouldn’t have opposed ending subsidies for Big Oil. Ryan has also opposed allowing Medicare to negotiate drug prices with Big Pharma, which could save seniors billions of dollars, and such a proposal is nowhere to be seen in his plan. I believe Ryan and the GOP are trying to manufacture hysteria over the deficit, then use that fear to gain support for dismantling vital federal programs and, more importantly, to defeat Barack Obama in 2012.

I think the funniest thing I ever heard was Mitch McConnell on a recent Sunday morning news program, defending Ryan’s plan for Medicare. McConnell said it would “empower Grandma, by giving her the power to shop for the best policy for her”. He went on to say this “shopping would create competition and drive down costs.” He conveniently leaves out that Ryan’s plan would be giving her a fixed “premium assistance” check which would end up covering less than half what her new private insurer would charge for adequate coverage. This also begs the question as to whether or not insurance companies are going to be lining up to insure people in their 70’s and 80’s. Doesn’t sound very realistic to me.

At the end of the day, Ryan’s plan destroys Medicare by privatizing it, and leaves a new program in place which would be more aptly named Mini-Care.

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