Obama to Make Major Budget Address

Via Politico: Obama advisor David Plouffe said this morning on Meet the Press that President Obama will make a major address on the budget later this week, which will include "finding savings in Medicare and Medicaid." More from Reuters, which says the address will be on Wednesday.

Plouffe also said that even if Rep. Paul Ryan's medicare kill bill passes the House, it won't become law. (Does he mean it won't pass the Senate or Obama will veto it?)

Ezra Klein saying Obama's health care law (The Patient Protection and Affordable Care Act) already addresses Medicare problems and will do a lot more for containing costs than Paul Ryan's kill bill.

Ezra highlights two documents to make the point. One is the Congressional Budget Office's Long Term Budget Analysis and the other is Kaiser's summary of the Affordable Choice Act (the Medicare portion begins on page 8.) [More...]

Ezra writes:

The bottom line is this: The Affordable Care Act is actually doing the hard work of reforming the health-care system that’s needed to make cost control possible. Ryan’s budget just makes seniors pay more for their Medicare and choose their own plans — worthy ideas, you can argue, but ideas that have been tried many times before, and that have never cut costs in the way Ryan’s budget suggests they will.

That’s why, when the Congressional Budget Office looked at Ryan’s plan, they said it would make Medicare more expensive for seniors, not less. The reason the deficit goes down is because seniors are paying 70 percent of the cost of their insurance out-of-pocket rather than 30 percent. But that’s not sustainable: We’ve just taken the government’s medical-costs problem and pushed it onto families.

The CBO report addresses Medicare on page 30 and social security in Chapter 3 at page 46.

As for raising taxes, the Affordable Care Act already does that. From this CBO report on the law:

PPACA will, among other things, raise revenues to pay for expanded health insurance coverage by imposing excise taxes and fees on industries in the health care sector, limiting tax-advantaged health accounts, increasing the Medicare payroll tax on upper-income households and adding an additional tax on net investment income on upper-income households. The new law will also eliminate the tax deduction for expenses allocable to the Medicare Part D subsidy to employers.

As for where you can read the bills yourself, look for the Patient Protection and Affordable Care Act (PPACA; P.L. 111-148), with amendments at the Health Care and Education Reconciliation Act of 2010 (P.L. 111-152).

So, is Obama going to propose even more cuts and taxes for Medicare? We don't need them. Is he going to propose tinkering with social security benefits?

Here are Obama's views from 2008 on social security . He was sympathetic to seniors in 2008, even proposing to eliminate income taxes on those making under $60,000 a year. What will he propose now?

If Medicare and Social Security get torpedoed, can those of us who are under 65 and not collected a dime, and who have paid in hundreds of thousands of dollars, get our money back?

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    I will bet $1.00 that Obama tells (5.00 / 7) (#1)
    by Anne on Sun Apr 10, 2011 at 10:14:21 AM EST
    us that Ryan's got the best interests of the nation's fiscal health in mind, that he looks forward to working with him on this, and that, working together, and making the necessary concessions, they can come up with a plan to find savings in these programs that won't affect anyone currently 55 or older.

    Obama was sympathetic to seniors in 2008 because he needed their votes; he has done little since to show that his sympathy was at all genuine.

    And I will bet another $.50 that he mentions his grandmother AND his mother.

    give me 10 to 1 and (none / 0) (#2)
    by observed on Sun Apr 10, 2011 at 10:20:57 AM EST
    Ur on. Also, what is ezra smoking? I am asking on behalf of tl libertarians.

    Ezra is useless (none / 0) (#27)
    by kmblue on Sun Apr 10, 2011 at 08:52:36 PM EST
    a top competitor in the High Broderism competition.
    Krugman says he reads Ezra.  I sent him a polite note suggesting he STOP!

    Obama promised a lot of things in 2008 (5.00 / 2) (#3)
    by Yman on Sun Apr 10, 2011 at 10:30:29 AM EST
    Here are Obama's views from 2008 on social security . He was sympathetic to seniors in 2008, even proposing to eliminate income taxes on those making under $60,000 a year. What will he propose now?

    But, as they say, that was then, this is now.

    Needing until Wednesday before he faces (none / 0) (#7)
    by Militarytracy on Sun Apr 10, 2011 at 11:03:01 AM EST
    all of us tells me that they don't how to spin this thing either in order to make anything seemingly OKAY for anyone.  

    Sounds about right (none / 0) (#10)
    by Yman on Sun Apr 10, 2011 at 11:48:25 AM EST
    We'll see what he has to say. but at this point he could tell me that grass is green I'd still look out my window to verify.

    The kabuki begins (5.00 / 2) (#4)
    by MO Blue on Sun Apr 10, 2011 at 10:39:13 AM EST
    Obama's "finding savings in Medicare and Medicaid." will end much like his negotiations on tax cuts to the rich and cuts to domestic spending meaning that the lower 98% will lose big time.

    While I believe that Rep. Paul Ryan's medicare will not become law this year, Obama's negotiated "savings in Medicare and Medicaid" will not be for the benefit of those who need affordable health care.

    The majority of the taxes imposed in the insurance legislation make actual health care less affordable by forcing people to assume more of the costs of the care.

    BTW, that sympathetic rhetoric directed at seniors.  Not only did Obama not eliminate income taxes on seniors making under $60,000 a year, my taxes on a pension well under $20,000 went up this year so that Obama could give even more generous tax cuts to millionaires and billionaires. So please don't tell me about how sympathetic Obama is to seniors.


    Kinda curious (none / 0) (#12)
    by jimakaPPJ on Sun Apr 10, 2011 at 12:17:47 PM EST
    my taxes on a pension well under $20,000 went up this year

    Can you tell us how that happened? I was unaware of any FIT increases.

    Not that I mind blaming Obama...



    My mother (none / 0) (#13)
    by Makarov on Sun Apr 10, 2011 at 12:35:54 PM EST
    receives a small federal pension. This year, here monthly benefit decreased as they increased IRS withholding on it.

    I saw only one notice she received about it, and I didn't read anything about tax rates increasing.


    Well you aint blue, but thanks for the reply (none / 0) (#22)
    by jimakaPPJ on Sun Apr 10, 2011 at 02:47:47 PM EST
    And the benefit/pension did not decrease. It remained the same. The amount she received went down because the Feds decided to withhold more.

    I don't know how Federal pensions work but my private stuff can't be touched unless I change it via notification that I want to.


    My pension is private and not a federal pension (5.00 / 1) (#25)
    by MO Blue on Sun Apr 10, 2011 at 07:59:23 PM EST
    The amount of the federal taxes deducted from my check went up $31 on a small private pension. My federal deduction is set up so that the company deducts the going rate for someone claiming one deduction. So if the taxes change up or down, my deduction changes accordingly.

    Was out all afternoon and most of the early evening or I would have responded sooner.  


    The withholding rates (none / 0) (#28)
    by Harry Saxon on Mon Apr 11, 2011 at 08:10:48 AM EST
    have nothing to do with the Federal Income Tax rates on income, they are determined and published in Publication 15 from the IRS, and one can use the form W4-P to change the withholding on a pension or an annuity.

    I doesn't really matter what Obama says and (5.00 / 2) (#5)
    by Militarytracy on Sun Apr 10, 2011 at 10:49:19 AM EST
    does, as soon as he plants any foot anyplace the Republicans will play good cop bad cop with him again and he will be face planted again, and then again, and then again.  He doesn't fight, he stands for nothing in particular, so they toy with him and toy with him and toy with him endlessly.  He will surpass Jimmy Carter in resembling a jelly fish before this is over.

    Oh I think we know what O will do, J (5.00 / 2) (#6)
    by Dadler on Sun Apr 10, 2011 at 10:56:31 AM EST
    "You're not fooling anyone," said Monty Python, pretending you don't know.  Obama will negotiate against himself and thus end up with an outcome that will be infinitely worse than it ever needed to be.  Because 1) he is conservative by nature and 2) because he is an addled psyche trying to get his "father" (the Repubs) to come back and embrace him, while denigrating his "mother" (those many to the left who are fed up with him).  You cannot expect to counter a right wing as crazy as we all know they are, J, with a guy like Obama.  This country, by all measures, is headed for a form of civil war.  That is our only logical outcome here.  May take a decade, may take longer, may be here tomorrow.  But this nation cannot go on in this state of murderous delusion.  And the longer we cling to charlatans like Obama, the worse that eventual real war is going to be.

    Sheesh (5.00 / 3) (#8)
    by TJBuff on Sun Apr 10, 2011 at 11:04:59 AM EST
    Somebody might want to remind Obama that unemployment is 8.8% before he commits political hari-kiri.

    I'd say you better get used to President Mittens if this actually happens.

    Well...eight comments and no one's (5.00 / 5) (#9)
    by Anne on Sun Apr 10, 2011 at 11:27:07 AM EST
    got any level of confidence - unless "none" is considered a level - in what Obama will say, and then what he will do.  No surprise there...I mean, isn't it clear by now that what he says is usually little more than a giant head-fake to the left as he prepares to go where he's most comfortable - to the right?  Forget what he says: his actions over the last two+ years speak for themselves, and none of them even whisper "Democrat."

    For the life of me, I have no idea why anyone is still buying what this man is selling.

    Obama (5.00 / 4) (#16)
    by Makarov on Sun Apr 10, 2011 at 12:40:45 PM EST
    was the only Dem candidate in 2008 that claimed Social Security was in "crisis". I'll be surprised if he doesn't suggest cutting benefits at some point.

    Today on one of the bobblehead shows, Plouffe said the President doesn't see SS as "one of the central drivers of the deficit", but admitted the President would like to see SS "strengthened without slashing benefits".

    There's a difference between cut and slash. I'm sure we'll learn what this before Obama's presidency is over. Possibly as soon as this week, but surely before the end of his second term.


    I see you caught the very precise word (5.00 / 3) (#26)
    by MO Blue on Sun Apr 10, 2011 at 08:13:05 PM EST
    parsing. More word games by the President and his spokespersons. They never say he is not going to CUT benefits. They only say he is not going to SLASH benefits. I guess if he only CUTS them in half that will be better than SLASHING them to only 25% of current value. He can then claim that he did not slash SS benefits.



    this issue along w/many others (5.00 / 5) (#14)
    by The Addams Family on Sun Apr 10, 2011 at 12:36:58 PM EST
    has been co-opted by a larger question:

    who will pay for our overlords' gambling debts?

    will it be the sociopaths who turned the economy into a casino? or will it be ordinary citizens, especially poor people?

    anybody wanna bet it's the latter?

    Great post (none / 0) (#18)
    by Militarytracy on Sun Apr 10, 2011 at 12:44:25 PM EST
    Just nails what has happened as we are all now sacrificed so the CASINO can earn itself back to solvency.  But then the CASINO said to hell with that too and decided solvency is boring and now it isn't even doing that.  And there really isn't a way for an American citizen to sit out being at the craps table now because we are the craps table and gambling is the only thing being saved, whether we want to play or not - they have rigged it now to where there is no way to not play.

    Send In The Clowns (5.00 / 8) (#17)
    by jeffinalabama on Sun Apr 10, 2011 at 12:42:22 PM EST
    Time for another farce. State and local governments are shedding jobs. Federal jobs-- them too.

    So now is the perfect time to monkey with SS and medicare.

    "My fellow Americans, we have done the impossible in only two years. We have guaranteed that the top one percent will NOT suffer, and we have guaranteed that insurance companies and big banks are safe and sound.

    "My next goal is to create serfdom. Remember, Big Daddy will take care of you when you work hard for him. Losing your property and liberty are small prices to pay to ensure that the 'most deserving' among us get what they deserve.

    "Now please continue to concentrate on television, fast food, and the media, which will tell you hoiw good it is to be rich in the USA."

    "I've got mine, and you need to get yours. Goodnight, and God Bless the currency of The United States of America."

    And if he delivered that at the (5.00 / 6) (#19)
    by Anne on Sun Apr 10, 2011 at 01:35:53 PM EST
    first tee at an exclusive golf club, he could close those remarks with..."now, watch this drive!"

    Who'd have thought, while Bush was president, that the next president of the US would be someone with the same callous indifference to the old, the poor and the sick - and that president would be a Democrat...

    Makes me want to weep, all the more because I don't see a way out.


    It's (5.00 / 5) (#20)
    by Ga6thDem on Sun Apr 10, 2011 at 01:43:34 PM EST
    called we're all going to be working for the owner of the plantation with no benefits and no retirement. You "retire" when you drop dead while working in the fields. It's something that my grandparents and my parents worked hard to get out of. Too bad there are so many idiots who buy into the belief that they are going to be the "plantation owners" and not the serfs.

    The inherent danger of the American Dream (5.00 / 1) (#21)
    by Rupe on Sun Apr 10, 2011 at 02:16:09 PM EST
    Obama "health bill" (3.50 / 2) (#23)
    by diogenes on Sun Apr 10, 2011 at 02:57:25 PM EST
    The Obama health bill assumed gigantic cuts in doctor rates which NEVER pass Congress and haven't for years.  That's how it created the fiction of savings.  

    Oh Please ! (none / 0) (#15)
    by samsguy18 on Sun Apr 10, 2011 at 12:39:33 PM EST

    jeffinalabama to WH (none / 0) (#24)
    by oculus on Sun Apr 10, 2011 at 06:13:41 PM EST
    speechwriting!!! Meanwhile News Corp. Fox News banner:  Obamapare.

    SITE VIOLATOR! (none / 0) (#30)
    by jeffinalabama on Tue Apr 12, 2011 at 08:51:27 AM EST
    I'd love to wear a white one, but I'll have to shave or wax my back and front... and besides, white would be misleading, wouldn't it?

    But I think a wedding dres might replace the black dress with prices falling as they are.

    Does the veil cost extra?