Roy Blunt’s Moocher Talk And What’s Wrong With It

Not only has the Affordable Care Act been attacked by Republicans for being a government takeover of the healthcare system or for creating death panels that will kill your grandparents in their sleep or for busting the federal budget and your own or for limiting your choice of policies and doctors, now the GOP has a new line of attack: ObamaCare is creating more moochers!

Even though that whole moocher thing didn’t work so well in the 2012 presidential election, it is so much a part of the right-wing’s dogma about Democrats and Democratic constituencies that they simply can’t let it go.

Roy Blunt, my own senator, appeared on this week’s Fox “News” Sunday. And, of course, he followed the newest ObamaCare’s-a-moocher-maker script on what Republicans should say in response to the release of the CBO’s analysis of some of the effects of the Affordable Care Act on the nation’s labor supply.blunt on fox

Before we get to what Blunt said, let’s look at the question Chris Wallace asked him and the way that question was set up for him and the way the reactionaries want us all to understand the issue. Wallace played a cherry-picked clip of Congressional Budget Office Director Doug Elmendorf’s testimony before the House Budget Committee last Wednesday. Here’s a transcript of the clip Wallace played:

DOUG ELMENDORF, CBO DIRECTOR: By providing heavily subsidized health insurance to people with very low income and then withdrawing those subsidies as income rises, the act creates a disincentive for people to work, relative to what would have been the case in the absence of that act.

Wallace stopped the clip there. What Fox viewers (and Roy Blunt) didn’t hear was what Elmendorf said next:

Now these subsidies, of course, makes those lower income people better off.

Yes. He said that. Right after he talked about the disincentive to work. He said that these folks would be better off. And he continued to explain:

This is an implicit tax, not the sort of tax we normally think about where if the government raises our taxes, we are worse off and face the disincentive to work more. Providing a subsidy, people are better off but they do have less of an incentive to work and I think they would respond to that by working somewhat less.

As you can see, the whole idea that folks would stop working or reduce the time they spend working is essentially based on what economists “think they would respond to” in terms of being better off because of the ACA. And it turns out that the CBO’s number-crunchers were influenced by the work of a conservative economist, as Jonathan Chait (“How Obamacare Became the New Welfare”) notes:

The Congressional Budget Office’s budget update last week surprisingly adapted an analysis, advocated by conservative economist Casey Mulligan, that Obamacare would induce the equivalent of two million full-time jobs in reduced labor. Now, in addition to its previously recited horrors, Obamacare was taking money from hard-working Americans to finance indolence.

Mr. Mulligan has been an outspoken critic of the Affordable Care Act from the start. Last October he criticized it for—sound familiar?—creating “a reduction in the reward for working” and suggested that its full implementation this year might cause “a recessionary double-dip.” So, he’s not a fan of the law, and it is unclear why the CBO embraced some of his thinking as to the effects it will have on the labor supply.

politics 1984 IS HEREBut such thinking is part of the long-time conservative critique of Democrats and their fondness for safety-net programs. On Sunday, Chris Wallace asked former-intellectual-turned-Fox-commentator George Will: “is giving people a cheaper way to get health insurance without working so much — is that a good thing or a bad thing?” As he always does, as he is no doubt required to do to get his big paycheck from Fox, Will took aim at liberals:

People forget Social Security was advocated, Chris, in the 1930s, as a way of getting people to quit working, because they thought we were confined to a permanent scarcity of jobs in this country. Second, it is the point of progressivism to put in front of the American people an increasingly rich menu of temptation to dependency on government. In order to change social norms and eventually national character, the president said, “I want to fundamentally change America,” and these disincentives to work are part of it.

Of course! President Obama and the Democratic Party want people to be dependent on government. They want people to stay in what Paul Ryan called the “poverty trap.” They want all Americans to quit working and become moochers. Makes perfect sense, right? That idea, which Rush Limbaugh and other right-wing radio personalities have aggressively pushed for more than two decades now, is what Republicans want voters to now specifically associate with “ObamaCare.”

But what about that idea? What about that poverty trap? You might be surprised. Jonathan Chait writes:

What’s more, as Jared Bernstein and Edwin Park point out, by lifting the threshold for who gets subsidized insurance, Obamacare actually reduces this poverty trap. Before Obamacare expanded it, Medicaid had extremely low income thresholds. It varies state by state, but the average state cut off Medicaid to people earning just 61 percent of the poverty line, a pitifully low sum. If you’re a single parent in Texas, you lose your Mediciad if you earn more than $3,600 a year. A family of two in Alabama loses its Medicaid once its income, after deductions, hits the lofty sum of $2,832 a year. That’s a severe incentive to keep poor people from obtaining full-time work.

Of course, Texas is boycotting Obamcare’s Medcaid expansion, and is thus keeping in place this strong incentive for its poorest citizens to stay out of the workforce. (If conservatives are worried about fostering a culture of dependency in these Obamacare-boycotting red states, they are keeping their fears very, very quiet.) The states choosing to expand Medicaid are correspondingly increasing the incentive for the very poor to enter the workforce.

As the above-cited economist Jared Bernstein makes clear:

During a hearing today on the latest CBO report, Rep. Paul Ryan declared the health care law to be “a poverty trap.”  He’s way off base.  In fact, he’s got it backwards…

None of this is to deny the CBO’s point that some people with incomes above the poverty level will choose to work less to avoid reductions in their premium subsidy.  But those choices are not the ones faced by the poor who live in states where the ACA is the law of the land.  In those states, the law has thoroughly reversed the poverty trap.  Rep. Ryan should know that and correct the misimpression he’s created.

Of course Paul Ryan, Roy Blunt, or any Republican for that matter, will not correct any of the misimpressions, not to say lies, they have created. And many mainstream journalists will continue to promote a false equivalence by reporting Republican misinformation and Democratic attempts to correct it as if both are morally equal and just part of the game of politics. Thus, if Democratic politicians want to keep their jobs and keep health insurance reform alive, it is up to them to get very aggressive in their defense of the ACA, especially with people like Roy Blunt running around and making mischief on television.

Which leads me finally to Blunt’s appearance on Fox yesterday. Chris Wallace, after playing the partial Elmendorf clip, asked Blunt this question:

WALLACE: Now, Republicans say this proves that ObamaCare is a job killer. Democrats say it means that fewer people will be locked into jobs. Senator Blunt, what is wrong with that, the idea of fewer people locked into jobs?

Now, of course Wallace knows that ObamaCare is not “a job killer.” The CBO report made clear and Elmendorf testified that the law would actually create jobs not kill them. But Wallace chose to set the question up by contrasting a Republican “job-killer” lie with a Democratic truth, to wit: the law allows some people to opt out of jobs they are locked into because of their need for employer-provided health insurance. And Blunt took the bait and further muddied the waters:

SEN. ROY BLUNT, R-MO.: Well, I think any law you pass that discourages people from working can’t be a good idea. Why would we want to do that? Why would we think that was a good thing? How does that allow people to prepare for the time when they don’t work?

This number is about three times as big as the number that was on the table when people that voted for the president’s health care bill voted for it in 2009 and ’10 when the estimate was it would cost the equivalent of 800,000 full time jobs. Now, they’re saying 2.3 million, and the best face can you put on that is that means people that don’t want to work don’t have to work. Surely, that’s not what we want to encourage. And that’s what this law does encourage.

Let’s start with his first declaration: “I think any law you pass that discourages people from working can’t be a good idea.” Oh, yeah? The Social Security law discourages people from working. Lots and lots of them. And lots of them are Republicans. Is Social Security a bad idea, Senator Blunt? Is Medicare a bad idea because it also discourages people from working? Apparently, Blunt thinks that making it possible for people who have worked all their lives and simply want to exit the labor force into retirement is a bad thing. No wonder he supported the infamous Paul Ryan Medicare-mutilating budget plan. I guess people should just work until their dead.

But more than that, notice how Blunt, like all Republicans are now doing and will continue to do until election day this November, focuses on those alleged 2.3 million” people who “don’t want to work” or “don’t have to work.” That is essentially the argument that was made more generally during the 2012 election. Paul Ryan said the following at a fundraiser in June of that election year:

Do you want the American idea of an opportunity society with a safety net where you can take a risk, start a business, make a difference, succeed and be honored for being successful? Or do we go down the path the president is proposing — a social welfare state, a cradle-to-the-grave society where we have more takers than makers?

The only difference now, in this election year, is that Republicans are targeting a specific effort by Democrats, embodied in the Affordable Care Act, to help low-income folks get affordable health insurance. And they think they have the CBO on their side this time.

elmendorfBut what about that CBO report and Director Elmendorf’s seemingly common-sense claim “that by providing a somewhat smaller incentive to work, somewhat fewer people would work”? Nobody argues that there won’t be some number of people who will do exactly what Elmendorf suggests they will do. As Jonathan Chait makes clear:

It is true that any means-tested government benefit will discourage some class of people from working. If a subsidy is available only for people below a certain income level, then people whose income approaches that income level will lose some incentive to earn more.

By its very nature, the concept of means-testing—which Republicans themselves have always embraced—involves people calculating whether working more actually makes them better off. People do that all the time when, for instance, they reach retirement age. The issue here is how many people will do what Elmendorf suggests. And relative to that issue Suzy Khimm (who used to be with the Washington Post’s Wonkblog) makes an excellent point:

It’s also worth taking the CBO’s findings with a grain of salt. The office had previously forecast that Obamacare would reduce the total hours worked by the equivalent of 800,000 workers, then updated its forecast based on more recent research. But one new study that CBO cited in its report actually “found no significant effect of Medicaid on employment or earnings” when Oregon expanded the program in 2008.

Austin Nichols, a researcher at the Urban Institute, says such evidence makes him skeptical that Obamacare’s effect on the labor market will be as large as the CBO predicts. “I don’t think we’re going to see the kinds of reductions in labor supply that Elmendorf is talking bout today,” says Nichols. “We have also evidence from Massachusetts that doesn’t show a large impact.”

Paul Krugman wrote that the “reduced labor supply” noted by the CBO and exploited by dishonest Republicans does in fact add to “the true cost of health reform.” But he demonstrates, through what he calls “some pretty prosaic economics,” that the effects are fairly modest. He ends:

Should you care how much other people work? Yes, a little – but not so much that it should change anyone’s views about health reform.

The truth is that at this point nobody really knows, with any degree of legitimate certainty, what direct and indirect effects the Affordable Care Act will have not only on the labor supply, but on other areas of the economy. As I have said many times, the ACA is an experiment. Much more time and evidence is needed to figure out whether the law will work as designed, whether it will need significant changes, or whether it should be scrapped altogether. But we have one political party that does not want it to work, will not lift a finger to fix any problems with it, and wants only to kill it before it has had a chance to prove or disprove itself.

Unfortunately for Missourians—especially for those Missourians who could get health insurance were it not for Republicans blocking Medicaid expansion—Roy Blunt is part of that one political party.

ObamaCare May Work!

When I retired five years ago, I did not “lose” my job. Nobody fired me or laid me off or put me on furlough. I simply stopped working because I wanted to. I withdrew my contribution to the total supply of labor in the country.

However, in the minds of Republicans and other right-wingers exploiting the latest Congressional Budget Office report that discusses the effects of the Affordable Care Act on the labor market, my decision not to work is actually a job loss. Hooey.

Although there is plenty of lying—yes, lying—and misinforming going on in terms of what the CBO report said, I chose this headline from a Fox “News” article on the matter to represent the lies and misinformation:

ObamaCare could lead to loss of nearly 2.3 million US jobs, report says

More hooey. That CBO report, which is titled, “The Budget and Economic Outlook: 2014 to 2024,” did not—I repeat: did not—say that the ACA could lead to “nearly 2.3 million” job losses. And although it is nice to see that conservatives, after years of bashing the CBO’s reports, are now embracing the nerds’ number-crunching skills, those cherry-picking right-wingers should actually read the report.

First of all, it should be noted that the portion of the CBO’s budget analysis that deals with the future labor effects of the ACA is, like the rest of the projections in the document, an “estimate.” And it is not just an estimate, it is an estimate essentially (but certainly not entirely) of what real people, including many low-income people or people approaching retirement age, will do in the face of getting help from the government to purchase health insurance. Thus, that CBO estimate is based on suppositions about human psychology. Keep that in mind when you hear the hysteria coming from Republicans (or when you hear the good news below).

Secondly, we are not talking about a reduction in the demand for labor, but a reduction in the supply of labor. You know, sort of like when I reduced the supply of labor by retiring five years ago. There elmendorfwas still a demand for my (excellent) services, but I chose not to supply them. As I said, that’s not the same thing as a job loss. By the way, I just heard Douglas Elmendorf, Director of the CBO, say the same thing in testimony before the House Budget Committee.*

There are already a lot of great articles out there that explain what is going on (here and here and here and here, for instance). The following is an excerpt from an excellent report on the subject from the Los Angeles Times:

The CBO projects that the act will reduce the supply of labor, not the availability of jobs. There’s a big difference. In fact, it suggests that aggregate demand for labor (that is, the number of jobs) will increase, not decrease; but that many workers or would-be workers will be prompted by the ACA to leave the labor force, many of them voluntarily.

As economist Dean Baker points out, this is, in fact, a beneficial effect of the law, and a sign that it will achieve an important goal. It helps “older workers with serious health conditions who are working now because this is the only way to get health insurance. And (one for the family-values crowd) many young mothers who return to work earlier than they would like because they need health insurance. This is a huge plus.”

Democrats should continue to aggressively counter the right-wing messaging on this latest CBO report (we can’t count on journalists to get the story straight, what with their “they said, they said” reporting in which telling a lie is on an equal footing with telling the truth). And Democrats, following economist Dean Baker, should enthusiastically embrace the fact that what may happen (remember: it is an estimate) is that the ACA will actually do what it was designed to do. Just before President Obama signed the ACA into law in March of 2010, he said,

And we have now just enshrined, as soon as I sign this bill, the core principle that everybody should have some basic security when it comes to their health care.

Basic security. Yes! The kind that may allow Dean Baker’s “older worker”—who has a serious health condition and needs health insurance provided by an employer—to opt out of the work force, or Baker’s “young mother” to stay at home and take care of her children. What family-values-hawking Republican could be against that?

Judging by their hatred of the Affordable Care Act, apparently every one of them.

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* UPDATE: Here is what Elmendorf said:

If someone comes up to you and says, ‘Well, the boss said I’m being laid off because we don’t have enough business to pay me,’ that person feels bad about that and we sympathize with them for having lost their job. If someone comes to you and says, ‘I’ve decided to retire,’ or ‘I’ve decided to stay home and spend more time with my family,’ or ‘I’ve decided to spend more time doing my hobby’ –- they don’t feel bad about it, they feel good about it. And we don’t sympathize, we say congratulations. And we don’t say they’ve lost their job, we say they’ve chosen to leave their job.

Ben Bernanke Channels Paul Krugman

I have been watching Ben Bernanke, chairman of the Federal Reserve Board, testify this morning before the Senate Banking Committee.

He has sounded a lot like Paul Krugman.*

Krugman, an economist of distinction who also happens to be a liberal, has been telling anyone who will listen that all the scary talk about the national debt is misplaced, considering that we have a genuine jobs crisis going on right now.

Bernanke said this morning:

High unemployment has substantial costs, including not only the hardship faced by the unemployed and their families, but also the harm done to the vitality and productive potential of our economy as a whole.

Ya think? He also said—again sounding like Paul Krugman:

In terms of the near-term recovery, there is a sense in which monetary and fiscal policy are working at cross purposes. To some extent, the fiscal policy decisions being made are mismatched with the timing of the problem. The problem is a longer-term problem, and should be addressed over a longer time frame in a way that, to the extent possible, it does no harm to the ongoing recovery.

In other words, the actions of Congress (fiscal policy—focusing only on long-term debt) are working against the Fed’s actions (monetary policy—buying government bonds now in order to help stimulate the economic recovery) and the result of those “cross purposes” is sluggish growth and needlessly high unemployment.

Now, we have to ask ourselves: Why would congressional Republicans, who are leading the charge when it comes to ginning up fear over our long-term debt problems, want to work against the economic recovery?

You can supply your own answer to that question. Suffice it to say here that we not only have most economists in the country saying it, including Paul Krugman, we now have clearly on the record the chairman of the Federal Reserve Board saying it too: Stop worrying so much about the future and concentrate on the now. There are still a lot of folks suffering from the Great Recession.

As for the dreaded sequestration, Bernanke supported the Congressional Budget Office’s “reasonable estimate” that the automatic $1.2 trillion spending cuts due to begin on Friday will dampen economic growth in 2013 by 0.6% and cost 750,000 jobs.  He also said that, in terms of the effects on economic growth, it didn’t matter much how the cuts were made, whether judiciously or injudiciously. That’s simply too much money to extract from the economy in the short term, even though “the sequestration takes place over time” and its impact “would probably build over a period of months.”

Bernanke also made a point about the constant battles over fiscal policy, what with cliffs, sequestration, and continuing budget resolutions, which cause enormous amounts of uncertainty for everyone and which Republicans use as devilish leverage to drastically cut spending. He said:

Uncertainty itself is costly.

Yes, the uncertainty created by hostage-taking Republicans, again and again, is costly, even though no one can exactly quantify it. But I doubt even the Fed chairman, trying to talk sense to the kidnappers, will help.

Ultimately, the American people will have to send the kidnappers a message because, in our democracy, the people are, paradoxically, both the hostages and the hostage rescuers.

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* Even though the two players have had their disagreements in the past.

Lazy Journalism

Nothing angers me more than lazy journalists, like the kind I heard on MSNBC’s Morning Joe this morning discussing the state of our national politics.

The easiest thing in the world is to say about what is happening what Mike Barnicle said this morning:

There’s no certainty in this country as to what’s gonna happen to my children. We are now living in a country, where—because of the way this campaign is being waged on both sides—where too many people no longer can afford to dream, and that’s a huge hole in the American fabric. A huge hole.

The huge hole, of course, is in Barnicle’s careless, almost comatose, analysis. If he built his journalistic career on such sloppy, inattentive thinking he has been one lucky guy.

The uncertainty in the country belongs squarely on the Republican Party, whose leaders from the beginning of Obama’s term decided that the best political course for them to follow was to create as much uncertainty and cultural angst as possible. There is simply no disputing that.

And the Romney presidential campaign is following that myopic political script written after the 2008 election by trying to capitalize on the almost complete Republican obstruction of the Democrat’s attempt to fix the massive economic problems left to them by years of governance according to Republican Party principles.

On that note, today’s Joplin Globe editorial played the same kind of game that Mike Barnicle was playing on television this morning. Oh, the piece, titled, “Stop pointing fingers,” started out just fine:

In 2001, the Congressional Budget Office predicted that the federal government would collect surplus funds in the amount of $5.6 trillion during the period 2002 through 2011.

Instead, we incurred a deficit of $6.1 trillion resulting in a gross loss in federal revenues during that period of time in the amount of $11.7 trillion. The question, of course, is why such a miscalculation occurred.

Well, that is certainly one question. But another one would be, who was responsible for the reversal from surpluses to deficits? Huh?

On the way to answering its question, the Globe cited some studies by the CBO, the Committee for a Responsible Federal Government, and the Pew Fiscal Analysis Initiative, all of which came up “with the same answers”:

 • The overall weakened economy was the primary cause. Growth for the entire period was predicted to be 3 percent. But from 2002 through 2007, growth was only 2.6 percent. Then during the period 2008 through 2011, growth was only an average of 0.2 percent. This overall lower-than-expected growth caused a 27 percent drop in federal revenue expectations during those years.

• The second highest cause was a 13 percent drop in federal revenues caused by enactment and continuation of all the Bush-era tax cuts, amounting to a 13 percent drop in federal revenues. Other smaller contributors were the Iraq and Afghanistan wars, increases in discretionary spending, defense spending increases not related to wars, the Obama stimulus, and the 2010 tax cuts.

Now, a fair-minded person, upon discovering that the Republican Party was in charge of both houses of Congress and the White House during most of the time the country’s economy was in decline and collapsing and when the path toward massive deficits was first being cleared of surplus brush, would naturally blame the Republicans for most of the mess. Right?

Except that the Joplin Globe editorialist, shielding Republicans from the blame they deserve, had a better idea:

It seems rather naive to be arguing about which party alone caused today’s American economic problems. Again, they both did so big time by cutting federal revenues as shown above, yet continuing to spend at historically high levels.

“Both sides” are apparently equally responsible, it turns out, despite the facts cited in the piece and despite what is plainly clear to anyone paying attention.

All of this, from Mike Barnicle’s dumb statements this morning to the Joplin Globe’s dumb editorial conclusion, serves the right-wing reactionary Republican Party very well, as it requires very little thought to simply assert that both parties are equally guilty, that both parties are equally to blame for the mess we’re in, and therefore the economic philosophy that brought us to our knees can be tried again.

CBO: The Affordable Care Act Will Save Even More Money Than We Thought

I wanted to write today about the ongoing Republican assault on women’s rights in places like Arizona (employers may have the right to grill women about why they need contraceptives and possibly fire them for giving the wrong answer) and Pennsylvania (the GOP gov’nor “says he supports forcing women to have an ultrasound before an abortion because they can just close their eyes”) and Texas (GOP lawmakers barred Planned Parenthood from state funding, which means the Federal money for the state’s Women’s Health Program will dry up, too).

But something else has bothered me since I heard it earlier this week:

RUSH LIMBAUGH: The Congressional Budget Office says that Obamacare is gonna cost twice what he told us.

I knew when I heard this newly-minted meme that it would, true or not, generate a lot of heat among heat-seeking right-wingers. Limbaugh went to great lengths to explain what he doesn’t understand, which is actually the format of his show, by the way.

What Limbaugh was trying to explain that he doesn’t understand was the “Updated Estimates For The Insurance Coverage Provision Of The Affordable Care Act,” released on Tuesday (The 8 1/2 page text is here and the blog post summary is here). The CBO was doing its job of getting us up-to-date on the “budgetary effects” of the coverage provisions of the ACA.

If Limbaugh—and others who ought to know better—had actually read the CBO report (as Rick Ungar of Forbes noted it is “available in very readable English“), they would have noticed that the CBO actually estimates the net cost of the ACA will be around $50 billion less than its estimate from last year!  Get that? $50 billion less, which means the new law will save taxpayers more money then the CBO originally estimated!

As I think about it, it is obvious that these Republican folks actually did read the report and found it necessary to lie about what it meant because otherwise their campaign to repeal it would lose a little steam, if word got out that it isn’t the budget-buster they’ve been saying it is.

I won’t bother to go over the nuances of the report, since good explanations are available, including here and here and here, but I will quote from each source listed:

As it says right in the title, this is just a look at “the insurance coverage provisions” of the Affordable Care Act. That is to say, it’s a look at the spending side of the bill. So it doesn’t include the Medicare cuts, or many of the tax increases, that pay for the legislation. It’s like reading only the “outlays” side of the budget and ignoring the “revenues” part. Of course that would make the deficit look huge. (Ezra Klein)

..not only is the GOP pitch a gross distortion of the truth, this is one of those all too rare moments where I get to actually prove the meme to be nothing more than another effort to confuse Americans. (Rick Ungar)

Yes, you read that right: The real news of the CBO estimate is that, according to its models, health care reform is going to save even more taxpayer dollars than previously thought. (Jonathan Cohn)

To be fair, Cohn does mention “one finding that give us at least a little pause“:

CBO now projects the number of people with employer-sponsored insurance will drop by 4 million people, on net. It’s still a small effect, representing less than 2 percent of the total population with employer-sponsored coverage. That’s well within the margin of error of these models. It’s also difficult to tell why CBO thinks this will happen—whether it’s fewer employers offering insurance, fewer employees accepting coverage, or workers moving into firms that are less likely to provide benefits. Any of those would be consistent with lower economic growth, as CBO now expects. Still, the issue merits attention.

Cohn also points out—for those Republicans who cry crocodile tears over the estimate that 4 million folks will lose their employer-sponsored insurance—”if they had their way, health care reform would reach even fewer people and provide less protection.”

And who can doubt that?

CBO Tells Us What We Already Knew

Nothing better demonstrates why folks are out in the streets these days than two recently released graphs from the Congressional Budget Office:

 From the CBO summary text:

♦ The share of after-tax household income for the 1 percent of the population with the highest income more than doubled, climbing from nearly 8 percent in 1979 to 17 percent in 2007.

♦ The population in the lowest income quintile received about 7 percent of after-tax income in 1979; by 2007, their share of after-tax income had fallen to about 5 percent.

♦ The middle three income quintiles all saw their shares of after-tax income decline by 2 to 3 percentage points between 1979 and 2007.

An important point raised on the CBO Director’s Blog was that “Government Transfers and Federal Taxes Became Less Redistributive,” which therefore increased the inequality of income distribution:

Specifically, in 1979, households in the bottom quintile received more than 50 percent of transfer payments. In 2007, similar households received about 35 percent of transfers. That shift reflects the growth in spending for programs focused on the elderly population (such as Social Security and Unemployment Insurance), in which benefits are not limited to low-income households.

Likewise, the equalizing effect of federal taxes was smaller. Over the 1979–2007 period, the overall average federal tax rate fell by a small amount, the composition of federal revenues shifted away from progressive income taxes to less-progressive payroll taxes, and income taxes became slightly more concentrated at the higher end of the income scale. The effect of the first two factors outweighed the effect of the third, reducing the extent to which taxes lessened the dispersion of household income.

Roy Blunt Weighs In On Kill-Medicare Budget Plan

I want to mention Missouri Senator Roy Blunt’s comment on the Paul Ryan/Republican Party throw-Medicare-from-the-train budget proposal, as well as his comment on Newt Gingrich’s assessment of the “radical” GOP budget plan.

Here’s what Blunt said to ABC News on Tuesday:

I don’t think it’s an extreme proposal at all….It’s not a radical idea. It’s one of many ideas we ought to be looking at…

Newt is an ideas guy…I didn’t understand the radical, right-wing social engineering comment and I suspect he wishes he hadn’t described it that way.  It would be a change but not a dramatic change. It’s just a different way of looking at how we provide choices for health care for people—you get competition and you get transparency as part of the process and when you have choice and transparency you wind up with better price and better quality and that’s one of the things we need to look at…

First, Blunt is lying through his Baptist teeth when he says he doesn’t understand Newt’s “radical, right-wing engineering comment.”  Of course he understands it; that’s why he suggests Newt should change it.

Second, that stuff about “choice and transparency” leading to “better price and better quality” has been contradicted by the non-partisan Congressional Budget Office, which estimated that the Ryan-Republican plan would cost those who reach 65 in ten years much more money, upwards of $12,500, or 61% of the cost of the average private plan.

Two more things from the ABC interview: Blunt irresponsibly threatened to not vote for an increase in the debt ceiling (the President, Blunt said, is “clearly gonna have to make some structural change decisions“) and he indicated he would vote against an effort in the Senate to cut off some of the subsidies oil companies are getting from taxpayers.  Wow. What a shocker.

For the record, last year Blunt was, according to OpenSecrets, in “the all-time top 10” for BP oil money in the House and was a major recipient of oil and gas money last year. 

(H/T, FiredUp!Missouri.)

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