Cut Big Oil Tax Breaks, CEO Pay, Not Medicare

Would workers and retirees fare better or worse should the Republican budget proposal become law and Medicare is replaced with their proposed voucher system? That question has been the subject of much discussion in national media and in the halls of Congress as well as many town hall meetings with members of Congress. There have also been a number of major studies conducted concerning the Republican budget proposal and none seem to offer much hope for an economically sound future for workers or retirees should the Republican budget become law.

Data taken from the Congressional Budget Office and the Center for Medicare and Medicaid Services concludes that in each state retirees turning age 65 in the year 2022 would see their out-of-pocket health care costs more than double should the Republican budget be adopted. The data was used in a study conducted by the U.S. Congress Joint Economic Committee which also shows a typical retiree, age 65, would see out-of-pocket expenses jump from $6,154 to $12,513, adding an additional $6,359 in expenses the retiree must pay. California’s typical retiree would see an additional $6,057.09 expense. Little wonder voters are skittish when it comes to Congress messing with the Medicare and Medicaid programs. Republicans are also finding very little support in their call to slash Medicaid funding. The May 2011 Kaiser Health Tracking Poll on public acceptance of Medicaid cuts shows that 60 percent of respondents oppose any changes to Medicaid.

Republican leader Sen. Mitch McConnell (R-KY) has been heard to crow that he would have preferred to see cuts in Social Security benefits attached to the bill when he and his other senate Republicans followed House Republicans in voting to end Medicare. Republicans might rather seriously consider the results of a special election held May 24 in New York’s 26th congressional district to better understand how upset the public is. In New York’s 26th district, the Democrat beat the Republican candidate soundly in what is well known as a safe Republican district. One might then ask just how safe are the three seats of San Diego area Republican congressmen since they voted to end Medicare? The voter mix in the New York district is very similar in at least two of the three San Diego area districts Republicans now occupy. Time will tell how voters will react on Election Day but reaction so far should serve as a wake up call for Republicans both here and throughout the nation.

Does Congress need to balance our bulging national budget? Yes indeed they do, but there are many ways to do that which do not destroy programs like Medicare and Medicaid. Why not start with restoring taxes to the level of the Clinton years when our economy was good and budget surpluses were a reality with promise of more of the same far into the future? That promise remained true until the huge Bush tax cuts were passed by Congress and two off-budget wars were started. Congress' continued insistence for prolonging the Bush era tax cuts seriously jeopardizes chances for economic recovery and serves as a constant threat to essential programs like Medicare and Medicaid.

Congressional leaders in both parties should start getting serious about taxing profits of big oil and addressing their budget-crippling tax loopholes and tax write-offs and the unholy congressional tax handouts they receive. The U.S. Congress Joint Economic Committee finds that eliminating or modifying several tax breaks currently benefiting the major integrated oil companies will reduce the deficit by $21 billion over 10 years without affecting pump prices in the near future. Congress must also address Wall Street’s exorbitant earnings coupled with huge tax write-offs as well as the billions in CEO bonuses that negatively impact wages of workers and do absolutely nothing toward boosting the nation’s economy recovery.  Adopting President Obama’s call to reestablish the Clinton era tax rates on income above $250,000 should also be adopted now and not wait until 2012 when those tax cuts are scheduled to expire.

Evidence clearly demonstrates that retirees do not believe they will benefit from the Republican proposal to eliminate Medicare and Medicaid. Neither those who are currently retired nor those still in the early working years can in any way be assured that Congress won’t cut Medicare and Medicaid benefits regardless of age once the cutting starts. Workers age 55 and younger know for sure their Medicare and Medicaid are on the chopping block should the Republican budget be adopted. Current Medicare recipients likely fear it wouldn’t be long till the budget cutters are knocking on their door, too. Many of today’s retirees still recall conditions prior to 1965 before Medicare was enacted. They remember that many millions of retirees were living in poverty back then unable to afford health insurance with most retirees being uninsurable even if they were fortunate enough to have the money to purchase a plan.

Politicians should be aware that seniors will remember the actions and inactions of Congress on Election Day and so will the millions of active workers. Seniors aren’t likely to allow congress to go back to the bad-old-days of no Medicare/ Medicaid protection for themselves or for their children. Every congressional representative should begin to pay attention to people’s needs as opposed to their continued kissing up to Wall Street, meeting its never ending insidious demands for more and more of our tax dollars while already historically profitable. There should be nothing more fearful to an incumbent seeking reelection than mad-as-hell workers and upset retirees heading to the polls on Election Day.  

-Charlie Williams