Washington, D.C. – Today, Congressman John D. Dingell (D-MI15) issued the following statement responding to the Republican Budget released this morning:

“Today, House Budget Committee Chairman Paul Ryan (R-WI) released his fiscal year (FY) 2012 budget blueprint.  The proposal, titled “The Path to Prosperity: Restoring America’s Promise,” is a concrete example of how House Republicans plan to cut benefits and programs for our Nation’s retirees and neediest citizens.  It is clear that the only prosperity the GOP cares about is that of the wealthiest two percent of the population, and the only promise it wishes to uphold is that to protect corporate America from paying their share of taxes.

“The GOP plan would convert the current Medicaid system to a block grant program.  Republicans claim this is a reform of the current system, but when did “reform” become an adequate synonym for “cut”??  Currently, the federal government matches a percentage of the money that states spend on Medicaid.  A block grant program would in effect cap the amount the federal government would pay and give a lump sum to the States at the beginning of the year.  Any extra Medicaid costs would shift to states, severely undercutting their ability to provide health care to seniors, children, and Americans with disabilities.  Giving a lump sum to our States to fund Medicaid does not allow for any flexibility for the States to adapt for the unforeseen – like another recession or an outbreak such as H1N1.  States would be forced to turn away their people in their greatest time of need.   In lean times states might have to make drastic cuts, and if another recession hits and more people need Medicaid or a contagious illness sends lots of disabled beneficiaries to the hospital? Too bad.

“The Republican proposal would also privatize Medicare, threatening the healthcare of 48 million elderly and disabled Americans.  The current Medicare system provides peace of mind and a sense of security to millions of Americans by ensuring their healthcare is provided for in their later years.  Starting in 2022, Medicare beneficiaries would no longer have access to a guaranteed set of health benefits.  Instead, they would receive a voucher to be used toward the purchase of private health insurance.  This idea sounds vaguely familiar.  Oh that’s right, it’s essentially a reproduction of the failed experiment of Medicare Advantage, which grossly overpaid insurance companies.

“The scariest part of this “reform,” or “cut,” is that the amount of the Medicare voucher and the Medicaid block grant would grow less rapidly than costs.  Hence, they would become increasingly inadequate over time.  Let’s think about that.  Seniors would receive a voucher, but its value wouldn’t keep up with costs.  Sure, this would save the government money, but it leaves those in need of care without a safety net, paying for services they can’t afford.

“The GOP plan also forces Congress to “reform” Social Security by using the suggestions issued by the National Commission on Fiscal Responsibility and Reform in December.  This would include raising the retirement age, decreasing scheduled payments, and reducing annual cost-of-living increases.  Again, this sounds more like a “cut” than a “reform” to me.

“Promoting their idea of prosperity and upholding their promise to corporate America, Republicans have included in the plan tax reform which would greatly benefit the rich.  It would reduce the top individual and corporate rates from 35 percent to 25 percent.  It would also eliminate tax incentives for innovative fields like clean energy, proving that the hold of powerful oil companies over the GOP is alive and well.

“I agree with House Budget Committee Ranking Member Chris Van Hollen (D-MD) when he says that “to govern is to choose, and it is not courageous to protect tax breaks for millionaires, oil companies and other big-money special interests while slashing our investment in education, ending the current health care guarantees for seniors on Medicare and denying health care coverage to tens of millions of Americans.  That’s not courageous, it’s wrong.”  The GOP budget blueprint isn’t a plan for our future; it’s an attack on those who depend on government programs the most.  I refuse to let the GOP turn a blind eye to these vulnerable populations.”

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