Friday, April 15, 2011
House Republicans Pass Plan To Phase Out Medicare, Slash Medicaid
House Republicans voted Friday in favor of a vision of the future without Medicare, with a significantly eroded Medicaid, and with lower taxes on wealthy Americans. By a vote of 235-193, they passed their budget resolution -- an opening bid in a broader partisan fight about spending and taxes that will dominate politics in Washington, DC for the rest of the year.
Four Republicans voted with all Democrats against the so-called "Path to Prosperity." Two Republicans and five Democratsdidn't vote.
It's also political poison. The GOP plan would slowly phase out the current Medicare system and replace it by offering beneficiaries partially subsidized private insurance (ironically, much like Obamacare). It would turn Medicaid into a block-grant program, allowing states to roll back currently guaranteed benefits for the poor and disabled. And it would eliminate most of the savings achieved from cutting these entitlements lowering the tax burden on wealthy Americans.
It was almost worse. Earlier in the day, Republicans fell prey to a Democratic procedural tactic and nearly voted to replace the plan they passed with an even farther-reaching one. Republicans didn't whip any of the alternative budgets, and were caught flat-footed when Democrats voted "present" on a more conservative proposal, leading to pandemonium on the House floor.
As an early salvo in his re-election fight, President Obama criticized Republicans for creating the looming fiscal crisis with reckless policies in the last decade, and for proposing to fix it on the backs of the most vulnerable Americans
"We contribute to programs like Medicare and Social Security, which guarantee us health care and a measure of basic income after a lifetime of hard work; unemployment insurance, which protects us against unexpected job loss; and Medicaid, which provides care for millions of seniors in nursing homes, poor children, those with disabilities. We're a better country because of these commitments," Obama said. "I'll go further. We would not be a great country without those commitments."
Though the budget has no future in the Senate, House Republicans have put themselves on the line for a political whipping as severe the one they received when they tried to privatize Social Security in 2005.
http://tpmdc.talkingpointsmemo.com/2011/04/house-republicans-pass-plan-to-erode-medicare-medicaid.php
Release: Tax Time? Not for Giant Corporations
BURLINGTON,
Vt., March 27 - While hard working Americans fill out their income tax returns
this tax season, General Electric and other giant profitable corporations are
avoiding U.S. taxes altogether.
With Congress returning to Capitol Hill on Monday to debate steep spending cuts, Sen. Bernie Sanders (I-Vt.) said the wealthiest Americans and most profitable corporations must do their share to help bring down our record-breaking deficit.
Sanders renewed his call for shared sacrifice after it was reported that General Electric and other major corporations paid no U.S. taxes after posting huge profits. Sanders said it is grossly unfair for congressional Republicans to propose major cuts to Head Start, Pell Grants, the Social Security Administration, nutrition grants for pregnant low-income women and the Environmental Protection Agency while ignoring the reality that some of the
most profitable corporations pay nothing or almost nothing in federal income
taxes.
Sanders compiled a list of some of some of the 10 worst corporate income tax avoiders.
1) Exxon Mobil made $19 billion in profits in 2009. Exxon not only paid no federal income taxes, it actually received a $156 million rebate from the IRS, according to its SEC filings. (Source: Exxon Mobil's 2009 shareholder report filed with the SEC here.)
2) Bank of America received a $1.9 billion tax refund from the IRS last year, although it made $4.4 billion in profits and received a bailout from the Federal Reserve and the Treasury Department of nearly $1 trillion. (Source: Forbes.com here, ProPublica here and Treasury here.)
3) Over the past five years, while General
Electric made $26 billion in profits in the United States, it received a $4.1
billion refund from the IRS. (Source: Citizens for Tax Justice here and The New York Times here. Note: despite rumors to the contrary, the
Times has stood by its story.)
4) Chevron received a $19 million refund from the IRS last year after it made $10 billion in profits in 2009. (Source: See 2009 Chevron annual report here. Note 15 on page FS-46 of this report shows a U.S. federal income tax liability of $128 million, but that it was able to defer $147 million for a U.S. federal income tax liability of $-19 million)
5) Boeing, which received a $30 billion contract from the Pentagon to build 179 airborne tankers, got a $124 million
refund from the IRS last year. . (Source: Paul Buchheit, professor, DePaul University, here and Citizens for Tax Justice here.)
6) Valero Energy, the 25th largest company in America with $68 billion in sales last year received a $157 million tax refund check from the IRS and, over the past three years, it received a $134 million tax break from the oil and gas manufacturing tax deduction. (Source: the company's 2009 annual report, pg. 112, here.)
7) Goldman Sachs in 2008 only paid 1.1 percent of its income in taxes even though it earned a profit of $2.3 billion and received an almost $800 billion from the Federal Reserve and U.S. Treasury Department. (Source: Bloomberg News here, ProPublica here, Treasury Department here.)
8) Citigroup last year made more than $4
billion in profits but paid no federal income taxes. It received a $2.5
trillion bailout from the Federal Reserve and U.S. Treasury. (Source: Paul
Buchheit, professor, DePaul University, here, ProPublica here, Treasury Department here.)
9) ConocoPhillips, the fifth largest oil
company in the United States, made $16 billion in profits from 2006 through
2009, but received $451 million in tax breaks through the oil and gas
manufacturing deduction. (Sources: Profits can be found here. The deduction can be found on the company's 2010 SEC 10-K report to shareholders on 2009 finances, pg. 127, here)
10) Over the past five years, Carnival Cruise Lines made more than $11 billion in profits, but its federal income tax rate during those years was just 1.1 percent. (Source: The New York Times here)
Sanders has called for closing corporate tax loopholes and eliminating tax breaks for oil and gas companies. He also introduced legislation to impose a 5.4 percent surtax on millionaires that would yield up to $50 billion a year. The senator has said that spending cuts must be paired with new revenue so the federal budget is not balanced solely on the backs of working families.
"We have a deficit problem. It has to be addressed," Sanders said, "but it cannot be addressed on the backs of the sick, the elderly, the poor, young people, the most vulnerable in this country. The wealthiest people and the largest corporations in this country have got to contribute. We've got to talk about shared sacrifice."
http://sanders.senate.gov/newsroom/news/?id=67562604-8280-4d56-8af4-a27f59d70de5
