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The Tea Party’s ‘Penny Plan’: is it really to cut $1 trillion from seniors?

Teabaggers Descend on WashingtonRemember the health care Town Halls a few summers ago?  Remember all the Tea Party followers carrying “Keep Government Out of Medicare” picket signs?  Welcome to Round Two of the Craziness.

Tea Party leaders in the Senate are rolling out their “Penny Plan” to reduce the federal budget deficit.

The lawmakers are pitching the plan in the simplest terms — cutting a penny from every dollar the government spends so that spending will soon equal revenue.  “Everybody should be able to live with one percent less in order to help bring this country back from the brink of catastrophic failure,” bill sponsor and Wyoming Republican Sen. Mike Enzi said in submitting the legislation just before August recess.

And gosh, doesn’t that just sound totally reasonable?  Families all across America have been “making do” with a little less (sometimes a LOT less) lately.  So why can’t the federal government do the same?

Well, for starters, because the federal government already IS.  Remember the Sequester? That wasn’t just a one-time thing – it’s a 10-year schedule of increasingly tough budget cuts.  So, as the government plans for the next decade:

Already built into Congressional Budget Office assumptions is essentially a freeze in all government programs other than Social Security, Medicare, Medicaid, and the other entitlements. That means that the 15 major executive departments and all of the independent agencies will be spending about 20 percent less after adjusting for inflation and population growth than they are spending now. As a result, we are already facing significant cutbacks in government services, ranging from food safety to law enforcement, air traffic control and national defense.

And now Tea Party legislators want to add their “Penny Plan” on top of the Sequester cuts.  That’s another trillion out of the federal budget.  Where do you suppose it’s going to come from?

If the FBI, the federal judiciary, the Federal Aviation Administration, NASA, the veterans medical program, the State Department, Customs and Border Patrol, the National Parks, cancer research, aid to local schools, and every other activity of every other department and independent agency of the government outside of defense was eliminated

… that would only account for about 60% of the cuts that would be required by the Penny Plan.

Don’t know about you, but I’m not going to hold my breath waiting for Tea Party legislators to cut defense spending.  [See 70 years of US defense spending, in one chart, here.]  Which leaves – yes, that’s right – “entitlements”.

Shiny Penny 2001 D Macro April 30, 20101The folks pitching the plan just talk about pennies.  But the bill itself singles out three programs that help senior citizens:  Social Security, Medicare and Medicaid.  (Remember that more than two-thirds of all nursing home/long-term care costs are paid by Medicaid, not Medicare or private insurance.)

I wonder what a trillion dollar cut to senior citizens would look like.  (Would it maybe look like all those “death panels” everyone was so worried about, a few years back?)

Here’s another reality check: the Penny Plan already has strong support among Republican legislators.  According to one count, 16 Senators and 65 Representatives support the Plan.  The list of Senators includes at least a couple of guys who want to run for President…

… and Senate Republicans have – at least so far – blocked efforts to appoint conference committee members to negotiate with the House regarding the FY14 budget.   The FY13 budget expires in five weeks.

And the Senate still has the filibuster.

It’s going to be an interesting next few months.  I hope that, this time around, the Tea Party’s followers are able to see beyond the “just a penny” rhetoric, to all the very real damage that this Plan would cause.

———

My phrase of the day is “ginning up”.  It means

  1. To create or arouse strong feelings in (someone); move or excite.
  2. To fabricate, invent or concoct (something), typically with deceitful intent.
  3. To quickly create something where time, not careful attention to detail, is of the essence.

Synonyms include: stir up, goad, whip up, fan the flames of, provoke, incite, and ignite.

Did you attend any of those health care Town Halls?  If so, you probably already know what this term means.

 

 

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About Liz Iacobucci

Liz Iacobucci is the former Public Information Officer for the State Employees’ Association of New Hampshire, SEIU Local 1984. Over the past three decades, she has served in government at the federal, state and municipal levels; and she has worked for both Democratic and Republican politicians.
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