HomeMy WebLinkAboutCOM 0316.000 1996-1998 ~
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To: James Arakaki
From: Dem. Leader Richard Gephardt
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• Today's Me~S~@-~ Leadership
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Thursday, April 24,1991 Communications
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Emperor Newt fidd/es ~~UNTY C~i- HAWAII RichardGcpha~ Chair
Whi/e Medicare Trust fund Burns
Medicare trust fund report comes out today -where's the GOP plan? Last week;
Republicans failed to meet the deadline set in law for Congress to pass a budget. Today brings
yet another reminder that the Republican Congress is not getting its work done. This
afternoon; the Medicare trustees will issue a report expected to project Medicare bankruptcy in
less than five years. The Republican Congress has known for years that Medicare was in
trouble -but instead of passing legislation to fix the trust fund, they've wasted the last two
years trying to ram through deep Medicare cuts to finance tax breaks for the wealthy.
GOP grab for tax breaks puts Medicare at risk. For two years, Democrats have been urging
Republicans to pass a set of modest Medicare savings agreeable to both parties, which would
extend the life of the trust fund for another ten years. But Republicans have refused, clinging
instead to a plan making much deeper cuts in Medicare, without extending the life of the trust
fund any longer. Instead. Republicans hope to use Medicare cuts as a cash cow for their plan
to give tax breaks for the wealthy. Their latest tax scheme would cost $300 billion over five
years, with most of the benefits going to the richest 5% (people making over $100;000 a year).
Democrats have consistent record of fixing the trust fund. Throughout the 32-year history
of the Medicare program, the trustees have raised red flags about Medicate insolvency ten
separate times. Democratic Congresses always responded with swift action to extend the life
of the trust fund. It has only been since Republicans took over in 1995 that Congress has
failed to act responsibly toward the Medicare trust fund.
GOP plan developed long before they discovered the trustees report. Republicans like to
say that the only reason they're promoting deep Medicare cuts is to save the program, and
extend the life of the trust fund. Nothing could be further from the truth. As two award-winning
Washington Post journalists wrote last year, Republicans decided to use deep cuts in Medicare
to pay for their tax breaks in February 1995. It was not until two months later that Republicans
"discovered" the Medicare trustees report -when then-Republican party chairman Haley
Barbour hailed the report as "manna from heaven!" the perfect excuse for the GOP's
Medicare Cuts (Tell Newt to Shut Up, David Maraniss and Michael Weisskopf, 1996, p. 37-38; 133).
Republican plan would have devastated Medicare. The Medicare legislation that
Republicans passed in the last Congress would have forced seniors to pay doubled premiums
for lesser quality care. Since Republicans have failed to come up with a Medicare plan this
year. one can only wonder- and worry. With a $300 billion hole in their budget to fill, thanks
to Newt's latest "crown jewel:" the Medicare cuts they finally come up with could once again be
very deep -and very harmful.