Medicare and Taxes, Obama's Bargaining Chips



As he embarks on his bid for reelection, Barack Obama is cranking up the same tune  for fixing the economy -- Raise taxes on the rich, cut back on Medicare benefits.   Rich, to Barack Obama, is any one who makes more than $250,000.00 per year.   Why does he not mention the overpaid, often under talented celebrities who make outrageous amounts of money and contribute to his political campaigns.  Those people are rich!  Obama knows that  if he goes along with the Republicans' plan to cut the budget in order to bring the national debt under control, he will risk losing the support of his liberal base.

After Obama gave up $38.5 billion to the Republicans last week in order to avoid a budget shut down, liberal activists have threatened to withhold their support if he doesn't fight against any more cuts.  The Republicans on the other hand, are talking the need to slice trillions, not billions of dollars in programs in order to save the nation from impending bankruptcy.  The compromise between the parties was short lived.  On Wednesday, Obama will once again have to face the nation and deliver a speech about the looming battle over raising the debt ceiling. 

Senator Barack Obama voted against raising the debt ceiling during the Bush administration, yet now his staffers claim that the president regrets his vote and admits that it was a mistake.  This admission means only one thing:  Obama will push for raising the debt ceiling.

Obama has also promised his supporters that if he must make any  reductions in government entitlements such as Medicare and Medicaid, they will be accompanied by tax increases on the rich and cuts in defense spending.  Now that he has authorized a surge in Afghanistan and  involved our country in a very costly third war in Libya, he plans to cut defense spending? Obama's feelings for the military were made quite clear last week when he threatened to withhold military pay if the government were to be shutdown.

Obama's liberal base wants him to appear as a job creator and not one who cuts the deficit budget, but the man has been in office for two years, and the only jobs that have been created are federal jobs, while the unemployment rate in the private sector remains basically unchanged.  There is no way that Obama can sell himself to the American electorate as a "job creator," while progressives believe that the fundamental problem in our country right now is unemployment and a job crisis, not a deficit crisis.

Last year when Obama agreed to extend the Bush cuts and not to penalize those who made $200,000 - $250,000 a year by taxing them, we agreed with the decision.  We feel that to penalize those who have studied hard to receive an education, and who have worked and sacrificed to eventually make a comfortable salary is unfair.  Those are the people who provide for themselves and their families without turning to the government for help and assistance.  Such taxes kill initiative and stifle the individuals' drive to succeed.  It is those  persons who make the  seemingly high salaries, who pay the high taxes to keep those entitlement programs going. They pay the exorbitant property taxes to keep the schools districts going.  Those are the folks who pay the high income taxes to the IRS.   Now the government wants to tax them again?  They are the people who pay for college tuition for their children without asking for assistance.   They are the ones who pay their debts, who spend the money that keeps small businesses afloat.  They are America's middle class. They are not the "rich." 

The White House has hinted that Obama's speech will announce deep cuts in the Medicare and Medicaid benefits.  In speaking with doctors and other health care professionals, we know that cutting benefits will be more difficult on the elderly than to consider Congressman Paul Ryan's plan to restructure the Medicare system.  If implemented now, the Ryan Plan would not affect anyone over the age of 55, but it would give those under 54 ample opportunity to successfully adapt to the changes before the full plan is implemented.  Those now receiving Medicare would not experience any drastic changes at all. 

The Medicare system has been subject to fraud and abuse for years, which has in large part been responsible for the system being broke and broken.  According to the Center For Public Integrity, "Every year as much as $60 billion in taxpayer money is stolen from Medicare, which pays for the health care of seniors and the disabled. This massive rip-off is done through various schemes, but largely by fraudulently billing for services or medical equipment they do not provide. “The legitimate Medicare recipient is hurt, the legitimate business that’s dispensing this and serving patients is hurt, every taxpayer is hurt, and we need to come down on this with both feet." But no serious crackdown has taken place, despite calls by legislators from both parties. We urge them to address the issue ASAP.

There are many reasons why Medicare has become unsustainable.  One is that people are living longer than previously expected, another is the fraud that increases yearly and goes unpunished.  Rather than to continue to frighten the voters, particularly the elderly with cuts to the system that they have by law been forced to accept as their health care provider, the Obama administration should seek to work with Republicans to find a lasting solution to the problem.  In the year 2000, then Texas Governor George W. Bush said:  "Medicare should not be a political issue."   We agree, it should not.  Medicare is dealing with peoples' lives.  Raising taxes is dealing in peoples' living.  Politicians don't have the right to mishandle either one.
 
 

"A wise and frugal government, which shall leave men free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned - this is the sum of good government. "

Thomas Jefferson

Editorial: Ryan's Budget Plan Gets The Job Done

From IBD Editorials.  No additional commentary necessary.
Two Sisters.

America's Fiscal Future: Paul Ryan's budget plan dramatically slows spending growth, gets entitlements under control and begins the arduous task of easing the nation's crippling debt load. So what's not to like?

As Congress argues over a measly $33 billion in cuts to the 2011 budget to keep the government from shutting down, the plan by House Budget Chairman Ryan for 2012 and beyond not only reverses the Democrats' profligacy but returns the U.S. to a path of fiscal responsibility.


The plan trims $6.2 trillion from President Obama's budget (see chart), driving outlays back below 20% of GDP, their historic average, and well below the 25% in Obama's budget.


As for the squealing of the Democrats over vicious "cuts," spending actually grows from 2011 to 2021 under Ryan's plan by $1.12 trillion — an increase of 31%, or 3.1% a year. So those who say government is being "slashed" are being disingenuous.


In contrast, since Democrats took over Congress in 2006, spending has risen $1.2 trillion, or 44%. That amounts to a yearly gain of 9% that has pushed us to the brink of insolvency.


One thing that Ryan does slash is the deficit — by $4.4 trillion over 10 years. That's $4.4 trillion less for our children and grandchildren to repay. More importantly, debt peaks at a projected 74.5% of GDP in 2013, then recedes to 67.5% by 2021 — vs. 87.4% under Obama's budget.


This is accomplished mainly by reforming entitlement and welfare spending in ways that lower costs while giving people more choices.


Ryan starts by overturning ObamaCare, saving hundreds of billions of dollars in higher taxes. Then, for the first time ever, he proposes serious reforms for Medicare, the greatest danger to America's fiscal health.


Instead of government paying providers directly and deciding what their services are worth, new retirees would receive "premium support" to help them buy insurance on the open market — similar to the much-envied plan that Congress itself has now.


Ryan also reforms the welfare system, giving block grants to states for both Medicaid and food stamps. This gets the federal government out of the business of micromanaging Americans' choices and puts states in charge, as it should be.


None of this, of course, works without a healthy economy. To that end, following President Reagan's notably successful lead, Ryan proposes a bold tax reform — one that reduces the top corporate and individual tax rates from 36% and 39.6%, respectively, to 25%, and gets rid of many of what Ryan calls "deductions and loopholes" that make our tax code hideously complex and costly.


This is a great plan. And it's one that Americans, weary of the Big Government meddling of recent years, are ready to embrace. The only question is: Can Democrats muster the political wisdom and courage to support something from the opposition that would work?

We CHALLENGE the Democrats to reply!

Copyright© 2000-2011 Investor's Business Daily, Inc.



Wisdom From The Past: Illuminating Our Future

When the Democrats oppose proposed budget cuts and proposed ways to save money thereby saving the country from bankruptcy, their usual charge is, "The Republicans don't have a plan."  We don't know about you, our readers, we are tired of hearing their mantra and have their supporters parrot it back.  The GOP has a plan, it has always had a plan in Congressman Paul Ryan's Road Map for America's Future, which was submitted to the president, and remained unanswered, not once, but twice.   Those whose duty it is to  report the news have paid it as little attention as the Democrats have. It took Congressman Ryan going on the offensive and speaking out before anyone sat up and took notice. 

Two Sisters have been talking about Congressman Ryan and his ideas for budget reduction for quite some time.  We were impressed when we first heard about it, and have attempted to get others interested in it.  It is going to be a long, hard fought battle to get the Senate, the president, and perhaps even some of Mr. Ryan's House colleagues to sign off on such steep cuts.  They are needed.  If we are going to get our nation back on track, then we are going to have to think about the greater good, and tighten our belts a tad.    Medicare reform will most definitely affect us personally.  We are fearful about the future, but we have to do more than just pay lip service to fiscal reform.  We have to agree to support those who are thinking ahead for the future of our country and actually implementing laws that will cut back expenses.

Children have a way of making parents feel guilty about certain decisions made, by shouting, "It's not fair!"  This always reminds us of the story about King Solomon's wisdom as told in Kings 3:16-28.  When two women approach the King with one child, each claiming to be the rightful mother, Solomon must resolve a dispute that has no easy solution.  Because there were no witnesses and no evidence as to which of the two women was telling the truth, Solomon called for a sword and declared that the only fair solution was to split the child in half, giving each woman her fair share.  The true mother revealed herself by selflessly asking Solomon to give the child to the other woman but to spare the child's life.  The liar and impostor, told Solomon that the child should not be hers or the other woman's, and told him to divide it.  The real mother of course was the one willing to relinquish her child in order to spare its life.

Is it fair that our government has been careless with the money entrusted to it and has allowed us to reach a financial crisis of this magnitude?  Of course not!  The question we now face as citizens is;  Are we willing to relinquish some of our "benefits" in order to help the nation survive an eminent financial disaster, or are we going to shout, "Not Fair!" and cause the wheels of fiscal reform to come to a grinding halt?  Are we going to be like the teachers and members of organized labor in Wisconsin, and other states, not willing to give a little for the good of all?  Each of us must wrestle with the answer.  Each of us must decide for ourselves what we will or won't support.  Two Sisters can only tell you what we feel and ask you to ponder the options we are given.  In looking towards the future we think of those in the younger generations who will follow in our wake. 

The future of our offspring, is what motivates us.  We were blessed to be Americans and to live in the greatest country in the world, at a time when our moral values were strong, our faith unshaken, and our Constitution was our country's guide. Those days are fleeting.  Thankfully there are young legislators like Paul Ryan, and Marco Rubio, who are determined to help all of us restore our beleaguered nation to its former status.  As patriotic Americans we can strengthen their efforts by giving them our full support.

Our favorite Founding Father, Thomas Jefferson said :  "Government big enough to supply everything you need is big enough to take everything you have ... The course of history shows that as a government grows, liberty decreases."  As government increases in size, our liberty is diminished.  We have a president, backed by Democrats who has dismissed the Constitution and is gradually turning our republican form of government into an imperial presidency.

We are on the threshold of the worst economic crisis this nation has ever faced.  The value of the dollar world wide is at an all time low.  The rate of unemployment in America is astronomical.  The real estate market has not been able to recover.  Small businesses are closing, and the demands placed on small business owners by Obamacare are causing many to operate on a shoe string.  All but a few are touched by this economic quagmire.  It is time to decrease wasteful spending, become fiscally responsible and learn to trim the fat!

The GOP leadership in the House is about to introduce legislation that will slash deficits by $4 trillion. " On Medicaid, Ryan will propose to block grant the program to states, which would save money, allow it to grow at a predictable rate, and give governors more flexibility over how it is implemented. This is a popular option among many governors who are struggling with Medicaid costs, and it’s a proposal that has already attracted bipartisan support (at least intellectually speaking), as it was previously co-proposed with Alice Rivlin, the former Clinton budget director."

"When it comes to Medicare, Ryan has previously proposed fundamentally reforming it to give retirees vouchers to purchase private insurance that would vary by income and health status. So, for instance, a poor and very sick beneficiary would receive a lot more than a very rich and healthy beneficiary. However, this reform would not kick in right away, as it only applies to those 55 and under. Thus, it would take time to produce savings and those wouldn’t show up in the CBO’s 10-year budget window."

"Ryan has supported the repeal of the national health care law. Were he simply to propose a repeal of the bill’s Medicaid expansion, which would add 18 million to the program’s rolls by 2021, it would save $674 billion from 2012 to 2021, according to CBO."

Brace yourselves the cuts on entitlement programs will be deep, but that is where most of the waste has been.  No one wants to see America's children go without health insurance, or go hungry, but neither do we want to see good money thrown away.  We've created an entitlement mentality in the U.S. that has stifled initiative, and willingness to achieve.  We have to look hard to see examples of the American pioneer spirit still alive.  It is the pioneer spirit which defines the American experience.  Through hardships, discoveries, struggles and perseverance, the early Americans adapted their lifestyles on the frontier and made a nation come to life.  The time has come to resurrect that spirit and face the challenges and changes that loom ahead. 

As we make decisions and prepare to  face a future of debt and uncertainty let us remember the words of Thomas Jefferson:  "But with respect to future debt; would it not be wise and just for that nation to declare in the constitution they are forming that neither the legislature, nor the nation itself can validly contract more debt, than they may pay within their own age, or within the term of 19 years." (September 6, 1789)   Words of wisdom from the past, applicable  today and in our future.

Obama's Authoritarian Approach

The following letter to the editors appeared in an East Coast newspaper this week.  It was written by a friend who shares our concerns regarding Obamacare.  We have chosen to publish it anonymously in order to protect the writer's privacy.


To the Editors:

     A federal judge ruled on Monday that the Obama administration's health care overhaul in unconstitutional, siding with 26 states that sued to block it.  U. S. District Judge Roger Vinson accepted the states' argument that the new law violates  people's rights by forcing them to buy health insurance.

     Over the months since the passage of Obamacare, many people have written to this paper, some in support and some not.  These questions are for those who support the bill and presumably support the Obama presidency and his agenda.

     Although a federal judge, a member of our judicial branch and a pillar of our checks and balances system, has declared Obamacare unconstitutional,  the White House site tells us that they are ignoring the ruling and continuing to to implement the law.  President Obama has therefore told America that he is above the law, and has no regard for our Constitution, which is no surprise to those of us who opposed his candidacy. 

     My question to the Obama supporters is:  Are you OK with this?  Do   you support Obama's authoritarian approach?  Are you comfortable with his disdain and disregard for our law?  Is this the America you want?  And while we are at it, how do you reconcile the granting of 733 Obamacare exemptions to unions, corporations and even some states?

    Does it not beg the question -- why is "affordable health care for all Americans" neither affordable, nor for everybody?

For those who believe that Obamacare will save them money, they will soon receive a rude awakening. Now that I will be going on Medicare in five days, we pay more for health insurance now that we've ever paid before.  Whether  or not the benefits we receive are as good as what we are accustomed to receiving remains to be seen.

I suffer from Chronic Obstructive Sleep Apnea.  I sleep with a C-PAP because it can save my life should I stop breathing for a prolonged period of time.  I needed to replace a faulty mask and went to the medical supply office where I get replacements.  I was told that they could do the exchange because once I went on Medicare, getting my needed supplies would become a much more complicated process.  Had I waited a week, I'd not be sleeping safely as I am now.  Who was the Democrat who lied and said that the GOP wanted Granny to just die? 

Although it is true that our legislature needs to focus on the creation of jobs and reduction of unemployment, it is imperative that the issue of health care be addressed as soon as possible.  The health care law, as it was rammed down the American people's throat by the Democrats who controlled both houses of Congress, and Obama himself needs to be repealed, and the congress needs to start over again.  Below are videos of how different members of the GOP feel about the present state of Obamacare.  We urge you to write your congressmen and senators and tell them you want the matter settled, NOW!

The health care debate is alive and well.  It just needs the support of the people. 

Obamacare passed, but it wasn't for lack of trying on the part of many.  Here is Representative Paul Ryan's (R) WI, giving an impassioned speech as to why the bill should be defeated. 

Listen to Senator Jim Demint, (R) SC, Discuss how Obamacare will affect costs of insurance and Medicare, and how some are getting the waivers that were referred to in the letter at to top of this article.

Now we face the question, should the entire bill be repealed or just "adjusted" and changes made.  Freshman Senator Marco Rubio (R)FL,  addresses the issue of repealing the bill and starting over;

We sincerely urge you to write, email, call your elected officials and make your feelings known.  Senator De Mint is correct.  Many of them face reelection next year, and we can also hope to defeat Obama in 2012.  But can we wait that long to have the issue of our health care resolved?  We think not.  Are we going to accept Obama's authoritarian approach, or do we want  our government of the people, by the people and for the people to persevere.

Paul Ryan to Give State Of Union Response

We are very excited to learn that Paul Ryan will give the Republican rebuttal to Obama's State Of The Union Address.  Paul Ryan is extremely articulate and poised in front of the cameras.  The main problem facing our nation is the economy and the lack of jobs and unemployment.  Ryan is extremely qualified to speak for the GOP on a subject that has become  one of his fields of interest and expertise.

Ryan to Give State of Union Response

By Patrick O'Connor -- The Wall Street Journal

Wisconsin Rep. Paul Ryan, who will spearhead GOP efforts to slash federal spending, will deliver the Republicans’ response to President Barack Obama’s State of the Union next week.

Rep. Paul Ryan (R., Wis.) (AP Photo/Charles Dharapak)Hours ahead of the president’s speech, House Republicans are scheduled to vote on a largely symbolic measure to grant Mr. Ryan, the new chairman of the Budget Committee, authority to set spending levels for the rest of the current fiscal year.

Mr. Ryan is a favorite among conservative activists. Even the president has singled him out as a Republican with serious ideas about trimming the deficit – albeit ideas with which Mr. Obama largely disagrees.

A year ago, Mr. Ryan wrote a sweeping proposal to balance the federal budget. His plan, entitled “A Roadmap for America’s Future,” would gradually shift Social Security into a program of individual investment accounts and drastically re-work both Medicare and Medicaid through a system of vouchers and regional high-risk pools that reduce the costs of covering the most expensive people to insure.

Speaker John Boehner (R., Ohio) and Senate Minority Leader Mitch McConnell (R.,Ky.) announced their choice of Mr. Ryan Friday morning. After Mr. Obama delivers his State of the Union address on Tuesday, the Wisconsin Republican will deliver his response from the Budget Committee’s hearing room.

In the release announcing his selection, the two Republican leaders highlighted the Democrats’ failure to pass a formal budget resolution last year – the first such lapse since the modern budget process was crafted in the mid-1970s.

“Paul Ryan is uniquely qualified to address the state of our economy and the fiscal challenges that face our country,” Mr. Boehner said in the release. “We’re broke, and decisive action is needed to help our economy get back to creating jobs and end the spending binge in Washington that threatens our children’s future. I’m pleased that Paul will be outlining a common-sense vision for moving our country forward.”





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