Nel's New Day

March 12, 2013

When Rep. Paul Ryan (R-WI) ran for U.S. vice-president only a few months ago, he said that a Romney/Ryan win would vindicate their plans to rape raping the country of all resources and shred the entire safety net. Instead, Barack Obama won re-election by more than 50 percent of the popular vote—the first time since FDR in 1944, the Senate netted two additional Democratic seats over 2010, and the House gained a majority of Democratic votes, leaving it in Republican hands only because of state gerrymandering.

Either Ryan has a short memory or he doesn’t believe what he said, because he has proposed another budget, more restrictive and farther to the right than the last one. Its $4.6 trillion cuts during the next decade come mostly from eliminating health care with its subsidized insurance exchanges and Medicaid expansions, turning Medicare into a voucher program with private insurers for anyone under 55, and doing away with Wall Street regulatory plans.

The voucher system defense by the Ryan Plan author is a semantic maze. On Fox News, Ryan told Chris Wallace: “[I]t’s not a voucher. It’s premium support. Those are very different. A voucher is you go to your mailbox, you get a check and you go buy something. That’s not what we are saying.” In fact, seniors would get a government subsidy instead of a guaranteed Medicare benefit. Ryan coined the word “voucher” for his plan before pollsters told him not to use that term. He also told Wallace that the GOP won the right to do this because it won the senior vote.

At the same time, the GOP plan cuts the top income tax rate to 25 percent from 39.6 percent. This 14.6 percent cut is over double Romney’s proposed 7 percent cut, that wiped out $5 trillion of revenue. The only way to cover these losses is to increase taxes for the bottom 99 percent of the nation’s population.

Big Oil’s donations to Paul Ryan to get him re-elected have paid off. The budget plan retains the tax breaks for these companies ranked as the most profitable companies in 2012. Tax breaks haven’t increased jobs: four of the Big Five dumped 15,200 jobs between 2006 and 2011. It won’t increase oil production: they produced 3 percent less oil in 2012 compared to 2011. They aren’t paying their fair share of taxes. Three of the companies averaged a 16-percent tax rate in 2011. Their revenues bought back their own stock to enrich top executives, boards of directors, and biggest.

Although Ryan claims that his plan will help the economy and the unemployment rate, Ezra Klein said:

“Ryan’s budget … won’t create jobs this year and will likely cost jobs in the years to come by putting the economy on a steep austerity ramp. There’s no housing policy for the millions of families in foreclosure and no way to read Ryan’s budget without assuming massive cuts to student-loans programs. As for medical costs, fully 59 percent of Ryan’s savings come from new cuts to Medicare, Medicaid, Obamacare or other health-care programs–and that omits the $800 billion in Medicare cuts he keeps from Obamacare. The nonpartisan Kaiser Family Foundation estimates that cuts on the order of what Ryan is proposing will mean around 35 million people lose their health-care coverage.”

Ryan’s goal isn’t actually to reduce deficits and debt. If it were, he would not eradicate revenue. As Klein said,

“The problem is that these ideas are not, on their own, popular. In fact, they’re deeply unpopular, and considered quite radical. That’s why Newt Gingrich rejected Ryan’s initial budget as “right-wing social engineering” — it is, in a very serious sense, an effort to use policy reform re-engineer the relationship individuals have with their governments, their communities, and their families. But presented on their own, Ryan’s plans scare people.”

In addition to the full repeal of President Obama’s health care law, it asks for limits on medical malpractice liabilities, transfers safety net programs—including food stamps—to states, and lowers the corporate tax rate to 25 percent. The big five oil companies–BP, Chevron, ConocoPhillips, ExxonMobil, and Shell–made a combined record profit of $118 billion in 2012 on top of a record profit of $137 billion in 2011. These companies also have a total of nearly $72 billion in cash reserves. Ryan’s tax cut would give the companies an additional $2.3 billion annually.

The House budget plan also authorizes the 1,700-mile Keystone XL oil pipeline, estimating that it will create 20,000 new jobs. In reality, TransCanada projects that the construction will create a maximum of 3,900 jobs, only 10 percent hired locally, and only 35 jobs existing after two years.

In arguing that he is concerned about “the well-being of the American people,” Ryan ignored the fact that the oil provided by Keystone XL is already in the U.S., mostly in the Midwest. Redirecting it will raise prices in the Midwest. In addition, the oil from Keystone XL isn’t for the U.S.: the pipeline lets Canadian oil producers export the crude oil in the Gulf of Mexico, saving their own country the environmental risks. The crude will be refined in Port Arthur and then shipped out of the country at great—and tax-free—profit for oil companies.

Earlier this year, Congress passed a law that they approve a budget by the April deadline. If they fail, their salaries will be held in escrow until a budget is passed or the current Congress ends at the beginning of 2015. Fortunately for them, the two chambers don’t have to agree in order for Congressional members to get their wages: each chamber can pass its own budget plan without the other one agreeing.

Ryan’s plan does increase spending in one area—defense. And he does have a novel way of making money for the country: he wants to sell off public lands because ”too much public land” is a serious problem.

Derek Thompson wrote: 

“Paul Ryan’s new budget is quite long, but its thesis can be stated briefly. If you cut spending on the poor to the bone and radically change the U.S. government’s promises to help needy people pay for health care, it is remarkably easy to balance the budget.”

The GOP’s plan is based on “massive, unrealistic” spending cuts, according to Michael Linden, Director of Tax and Budget Policy at Center for American Progress. Medicaid would face $1 trillion cuts in the first decade, while education and workforce training programs would get cut in half and transportation funding would be reduced by nearly 25 percent. The plan would also require deep cuts in other vital domestic programs.

Instead of trying to help the people in the United States through building the economy and decreasing the unemployment rate, Paul Ryan has one goal, and he has admitted it when he introduced his budget plan:

“This to us is something that we’re not going to give up on, because we’re not going to give up on destroying the health care system for the American people.”

He should have added that he won’t give up until he destroys the United States.

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