In last night's (1/23/2012) Florida NBC debate, Newt Gingrich was called out for lobbying for Medicare expansion, and he went ahead and openly admitted that he is proud of publicly supporting Medicare Part D, but denied that he was a lobbyist.
Medicare Part D is an entitlement expansion that forces the taxpayers to fund prescription drugs for seniors. It was passed in 2003 under a Republican-controlled Congress and Senate and signed by President George W. Bush. It is an economic disaster and was called "the most fiscally irresponsible piece of legislation since the 1960s" by David Walker, former U.S. Comptroller General. It stands as an unfunded liability to the tune of $15.5 Trillion.
For perspective of how big of an entitlement this is, Bruce Bartlett said the entire Social Security system ties up 1.3% of GDP, and Medicare Part D ties up 1.2% of GDP.
The 81% Tax Increase: To pay for government's promises on Social Security and Medicare - Bruce Bartlett (2009)
Dispute Over Gingrich’s Role In Medicare Part DMITT ROMNEY: ... that you came and lobbied them with regards to Medicare Part D, at the same time...
NEWT GINGRICH: Now, wait. Whoa, whoa.
MITT ROMNEY: ... your center was taking in contributions...
NEWT GINGRICH: You just jumped a long way over here, friend.
MITT ROMNEY: Well, another -- another area of influence-peddling.
(4 seconds pass)
NEWT GINGRICH: No, not -- now, let me be very clear, because I understand your technique, which you used on McCain, you used on Huckabee, you've used consistently, OK? It's unfortunate, and it's not going to work very well, because the American people see through it.
I have always publicly favored a stronger Medicare program. I wrote a book in 2002 called "Saving Lives and Saving Money." I publicly favored Medicare Part D for a practical reason, and that reason is simple. The U.S. government was not prepared to give people anything -- insulin, for example -- but they would pay for kidney dialysis. They weren't prepared to give people Lipitor, but they'd pay for open-heart surgery. That is a terrible way to run Medicare.
I am proud of the fact -- and I'll say this in Florida -- I'm proud of the fact that I publicly, openly advocated Medicare Part D. It has saved lives. It's run on a free enterprise model. It also included health savings accounts and it include Medicare alternatives, which gave people choices.
And I did it publicly, and it is not correct, Mitt -- I'm just saying this flatly, because you've been walking around this state saying things that are untrue -- it is not correct to describe public citizenship, having public advocacy as lobbying. Every citizen has the right to do that.
MITT ROMNEY: They sure do.
NEWT GINGRICH: And what I did on behalf of Medicare...
MITT ROMNEY: They sure do.
NEWT GINGRICH: ... I did out in the open, publicly, and that is my right as a citizen.
NBC MODERATOR BRIAN WILLIAMS: Gentlemen...
MITT ROMNEY: Here's why it's a problem, Mr. Speaker. Here's why it's a problem. And that is, if you're getting paid by health companies, if your entities are getting paid by health companies that could benefit from a piece of legislation, and you then meet with Republican congressmen and encourage them to support that legislation, you can call it whatever you'd like. I call it influence-peddling.
It is not right. It is not right. You have a conflict. You are -- you are being paid by companies at the same time you're encouraging people to pass legislation which is in their favor.
[ame]http://www.youtube.com/watch?v=hSqGk765jT0[/ame]
Medicare Part D is an entitlement expansion that forces the taxpayers to fund prescription drugs for seniors. It was passed in 2003 under a Republican-controlled Congress and Senate and signed by President George W. Bush. It is an economic disaster and was called "the most fiscally irresponsible piece of legislation since the 1960s" by David Walker, former U.S. Comptroller General. It stands as an unfunded liability to the tune of $15.5 Trillion.
For perspective of how big of an entitlement this is, Bruce Bartlett said the entire Social Security system ties up 1.3% of GDP, and Medicare Part D ties up 1.2% of GDP.
The 81% Tax Increase: To pay for government's promises on Social Security and Medicare - Bruce Bartlett (2009)
Happy Birthday, Medicare Part D! Now Die! Die! Die! - Reason.com (2010)To summarize, we see that taxpayers are on the hook for Social Security and Medicare by these amounts: Social Security, 1.3% of GDP; Medicare part A, 2.8% of GDP; Medicare part B, 2.8% of GDP; and Medicare part D, 1.2% of GDP. This adds up to 8.1% of GDP. Thus federal income taxes for every taxpayer would have to rise by roughly 81% to pay all of the benefits promised by these programs under current law over and above the payroll tax.
Since many taxpayers have just paid their income taxes for 2008 they may have their federal returns close at hand. They all should look up the total amount they paid and multiply that figure by 1.81 to find out what they should be paying right now to finance Social Security and Medicare.
To put it another way, the total unfunded indebtedness of Social Security and Medicare comes to $106.4 trillion. That is how much larger the nation's capital stock would have to be today, all of it owned by the Social Security and Medicare trust funds, to generate enough income to pay all the benefits that have been promised over and above future payroll taxes. But the nation's total private net worth is only $51.5 trillion, according to the Federal Reserve. In effect, we have promised the elderly benefits equal to more than twice the nation's total wealth on top of the payroll tax.
The prescription drug plan is about the worst giveaway you could imagine, just a pure, unadulterated sop to a bunch of politically connected voters. When the plan was first being discussed, seniors were paying a whopping 3.2 percent of their income on pills annually - less than they did on entertainment. As Bartlett points out, George Bush and the House Republicans (including Speaker-elect John Boehner and budget whiz Paul Ryan) who voted overwhelmingly for it didn't even bother to pretend they were going to pay for it with tax hikes or spending cuts. Just an awful plundering of the young and relatively poor to give booty to the old and relatively flush.