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A Further Perspective
The Paramount Issue of 2012
Following Paul Ryan’s lead.
(Page 2 of 2)
It’s not in the national interest to subsidize farmers, because food would be produced at low cost without subsidies. It’s not in the national interest to subsidize Americans, through Social Security and Medicare, for the last 20 or 25 years of their lives because healthier people live longer and the huge costs make the budget unmanageable. It’s not in the national interest to subsidize mass transit, because most benefits are enjoyed locally: If the locals want mass transit, they should pay for it.
To date, only Paul Ryan has had the courage, conviction, and eloquence to make the case that needs to be made.
Hopefully, others in the GOP’s congressional wing, especially in the next Republican Senate, will immerse themselves in this issue for the sake of the country and our grandchildren. Even if the matter of entitlements were to be swept under the rug during the general election, it is going to be impossible to ignore in 2013 and beyond.
About the Author
G. Tracy Mehan, III served at the U.S. Environmental Protection Agency in the administrations of both Presidents Bush. He is a consultant in Arlington, Virginia, and an adjunct professor at George Mason University School of Law.
Letter to the Editor View all comments (37) | Leave a comment
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Bill Hussein O'Stalin| 1.5.12 @ 7:06AM
A great article that will be read by far too few.
Indy| 1.5.12 @ 8:17AM
Thank you, I received a "survey" from my Congressman and the way the questions were asked it is clear he is on the fast track to more spending. I will print off your article and attach it to my response.
Michael Tomlinson| 1.5.12 @ 8:24AM
Wrong! The paramount issue of 2012 is getting rid of Obama and the Reid Senate. This is the major issue of 2013 along with repeal of Obamacare and sending Obama and Holder to prison for Fast and Furious.
POST American| 1.5.12 @ 8:25AM
"----the avowed purpose of the of the
CFR and Trilateral groups is to create a
New World Order --a global government
based on the model of collectivism. And that
includes the elimination of the sovereignty
of nations, the US included. That's WHY it's
IMPORTANT. The people running our
government ARE determined to DESTROY it."
-G. Edward Griffin
Historian
(Invisible Empire documentary)
"---DID ou just hear me?
------------THIS IS TREASON."
-ALEX JONES
('Bankers or US' video)
-------------GETTING IT YET?
----FEMA camps and NDAA 1031
---------------------------------------------YOU WILL...
VonMisesJr| 1.5.12 @ 8:36AM
Nonsense. This is ruling class propaganda to make the people believe that the only way to cut spending is to end grandma's Social Security and Medicare. It is the same trick local governments use when they threaten to cut police and fire fighters if you don't fund their corruption and unnecessary jobs.
Here is the last fifteen years federal budget figures:
1996 - 2001 - $1.6 to $1.9 trillion
2002 - 2005 - $2.0 to $2.4 trillion
2006 - 2011 - $2.7 to $3.8 trillion
(http://en.wikipedia.org/wiki/United_States_federal_budget)
So from 2006 to 2011 (five years), federal spending has increased by some 60%. It is nonsense to accept that we have 60% more grandma's and grandpa's collecting entitlements. In ten years (2001-2011) the budget doubled. Did they clone both your parents in the last decade?
EPA increased about 108% over the last few years, 24% to the baseline and 84% stinkulus spending. Dept of Ed budget topped $77B in 2011 with $50B in discretionary spending. That's an Obama's re-election slush fund.
While entitlements must be reined in, this is a head fake to make you believe you are putting grandma out of the nursing home and into a cardboard box.
Mr. Meehan, I am surprised you can be so easily duped, or are you an establishment consultant getting paid for this tripe?
Vern Crisler| 1.5.12 @ 9:52AM
Excellent analysis Mr. MisesJr. You are indeed worthy of your namesake.
VonMisesJr| 1.5.12 @ 10:14AM
Thank you, Vern. I was fortunate to be taught real critical thinking. Question everything.
Perhaps, Mr. Mehan is a patriot and a great guy. I just question how he could not start from the facts and only consider obvious lies.
Al Adab| 1.5.12 @ 11:26AM
Interest payments on the debt now exceed defense spending. That cannot long continue. Entitlement spending buys votes and they all know it. Get SS and Medicare off budget, eliminate the rest (over time) sell some federal lands to buy down debt and base this years budget on last years net. Unless this situation ends, there is no future. A republican technocrat who proposes to manage the system better is no solution. Surgery, no matter how dangerous, is essential.
TrueBlue | 1.5.12 @ 6:18PM
Repeal Obamacare, remove E.O. 10988, disband the EPA and Dept of Education. Take the EPA regulations before Congress, one at a time, for a vote to be made into law (or not). No more of this bull$%^& enforceable by law Unconstitutional junk. Block grant the money to the states with no strings attached, you still save on the massive budget for all those Dept of Ed employees (yea yea, more jobs lost in the short term) and their offices, supplies, etc.
Reduce Corporate income tax to 15%, close all the loopholes with exception of charity donations and deductions for operating costs (parties and dinners for clients are not operating costs to me). Regardless of the tax rate the percentage of GDP the government takes in remains about the same (15-20%) so give companies money to invest and don't steal the money from startup companies so more people are willing to start a business.
There, you've now reduced the budget and increased employment without touching entitlements and increased revenue by allowing for more business transactions and more citizens with income to be taxed. Will that take care of the entire budget problem? No, but it's a start.
tom beebe| 1.5.12 @ 8:14PM
Please see my post below. No blck grants because I'd eliminate the things they're meant to replace. No corporate income taxes; where but from your pockets do you think corporations get the money to pay taxes? No loopholes (means to avoid taxes) if there are no taxes to avoid)
johnfromjersey| 1.7.12 @ 11:43AM
Agreed, but the surgery must be done on the right patient, and that patient is not the President, it's The collection of thieves called Congress, the career politicians. These people we send to speak on our behalf have turned Congress into their private reelection tools. They trade votes like so many baseball cards regardless of the outcome to we the people. Imo, if we the people do not put an end to the farce we call Congress this November, then they will collaborate to make it harder to get rid of them in the future. We need to refer to the model the founders left us, citizen government.
Bill Hussein O'Stalin| 1.5.12 @ 10:21AM
If it's nonsense then explain how they will paid for without more tax increases?
The only way the cost increases are being disguised now is to cut services and cut costs to physicians.
As more physicians drop out fewer people get care.
It's difficult to see how someone can dismiss these entitlements as huge burdens on taxpayers.
The real problem of course is that they are forms of central economic planning just like all other bureaucratic entities.
http://www.thedailybeast.com/n.....isn-t.html
Here's the deal: In 1997, Congress came up with a formula, the "Sustainable Growth Rate," that set the amount Medicare would reimburse doctors for treating its patients. The formula was constructed to track with both health-care costs and the overall economy. The growth of the first started outstripping the second in 2001, and as a result, the formula began to call for a cut in Medicare payments to doctors. When it came time to make that cut, nobody seemed to want to go through with it. The reason was obvious. If doctors suddenly had to eat a substantial part of the cost of treating Medicare patients, they might drop those patients. "That would cause an uproar from a large voting bloc," says Lori Heim, president of the American Academy of Family Physicians. "So Congress just postponed dealing with the inevitable."
Every year since 2001, when the cut has come due, Congress has decided it needs more time to decide how it feels about the issue. Most recently, the cut was supposed to go into effect Jan. 1; Congress bought itself two more months. Monday, of course, is the new due date.
Meanwhile, because of the way the Sustainable Growth Rate formula is constructed, the cut has been getting bigger every time it's been delayed. If it gets made on Monday, doctors across the board will see a 21.2 percent drop in their reimbursement rates. That's an enormous amount. (For context: last year, specialists lathered themselves into a frenzy over the prospect of a 10 percent pay cut that would have been used to pay general practitioners more.) Many doctors can't afford to treat patients for so little compensation—especially primary-care doctors, who are already financially strapped.
Michael A. Gabel| 1.5.12 @ 10:25AM
Hey, dumb ass, grandma would have been so much better off if she and her husband would have been allowed to save in their own private Social Security Savings account during their working years.
In addition to building far greater wealth in their own accounts than the government ever could, they would not need to rely upon government to tell them how much they'll get, when they can get it and if they will receive an inflation adjustment (which they have not for the past two years).
Further, owners of their own accounts are able to control the distribution of the remainder upon death, unlike the government Ponzi scheme where the benefit ends upon death.
So, when you hear conservatives push for real Social Security reform (privatization), tell grandma its because we believe in free Americans, like her, controlling their own hard earned wages and building wealth without the oppression of a profligate spending government.
The fact that government spending has risen in ALL areas, as you point out, should tell you that we should be very reluctant to feed this beast.
VonMisesJr| 1.5.12 @ 10:56AM
Michael,
You are absolutely correct about this "beast" being unsustainable. But the losers in any Ponzi Scheme are the last one's in. In the case of Social Security, it is mandatory particiation.
My parents and grandparents got back much more than they contributed. Me, probably not so much. My kid and his generation are screwed.
And the irony of socail Security is that the seniors control something like 70% of the nation's wealth, and their grandchildren will pay 40% in taxes to pay for their SS and Medicare.
The other real problem is that when seniors pay $10 to go to the doctor as a co-pay, they go because they are bored, or want reassurance that they will make the holidays or just because it is worth $10 when the government gives you $1,200 a month if you can complain about your ingrown toenail or aching back. Why should they give a crap as long as someone else's grandkid appears to be paying the bill?
VMJr.
JimH| 1.5.12 @ 1:01PM
Very true, VM. Government spending and taxes are most easily seen costs of government and must certainly be reduced, but what is also a major drag, as much or more is the governmental interference in everyone’s life and business. If the EPA, TSA and all the others just sucked up money it wouldn’t be nearly as bad for the country as their active disruption of free markets and civil liberties.
VonMisesJr| 1.5.12 @ 2:08PM
And nobody is talking about the uncertainty that is caused when congress decides on 12/23 to allow Obama's 2% extention of the payroll deduction for two months.
Most SMB have to get their IT staff on stand-by to run 24/7 to be ready to develop, test and implement payroll changes with change management backup in case of failure.
Then if their business applications are not integrated, all reporting and financial systems must be synchronized.
Liberal elitist know this is poison for business, and the liberal mob doesn't even understand. And the Republican establishment either doesn't get it, or just care about their Chairmanships.
Timothy L. Pennell| 1.5.12 @ 8:41AM
Let me tell you the REAL Paramount Issue, facing this Country, in 2012.
How long have I been writing about DICTATORSHIP 101? How long have I been saying that this guy is a Dictator, and he's getting away with it, because we have a sycophantic Press, only too happy to Inform us of his Greatness, and Cover Up the rest?
We heard, in 2008, when his ASSOCIATIONS with Communists, and Marxists, and Socialists, and Maoists, and Anarchists were brought up, that WE WERE GUILTY of perpetrating "Guilt by Association". We were lectured that 'Birds of a Feather', don't necessarily 'Flock Together'. And we were derided as RACISTS, when we used the words of CHRIST: "Men shall know you bye the company you keep".
Yesterday, the Man with his Life's Documentation SEALED in a Vault, on an Island State, in the Middle of the Ocean, Crossed the Rubicon. He picked up a Hammer, walked over to the Library of Congress, smashed the case that holds the Constitution, and WIPED HIS *SS with it.
He has decided, by himself, that "I" am not gonna stand by, while a Minority (Irony, anyone?) in the Senate is doing things that will harm this Economy (Projection) while I'm trying to save the Middle Class." (Lie)
"I'm" not gonna stand here. "I'm" not gonna allow it.
I thought he was a Constitutional Professor? I thought that he taught the Constitution? Of course, that was all just one more LIE, from the Media. One more LIE from people like Historian: Michael Beschloss, who told Don Imus that Obama is probably the Smartest person to ever be President, and that his I.Q. "is off the Charts". When asked, by Imus, if he knew what his I.Q. was? Beschloss replied: "I have NO IDEA, but I'm sure that it's really high".
He HIDES his Records, in a Vault, like the Vatican would hide something that would PROVE that there's no GOD. Obamas' Acolytes preach the MYTH about the Man, and it's up to the rest of us, to Prove otherwise.
He was in the U.S. Senate when Harry Reid, and Dick Durbin, and Chuck Schumer, and all of the rest of the SCUM, did the exact same thing, while George Bush was President, as the Republicans are doing, now.
Where's the Media? Where's ABC, CBS, NBC, and NPR? They all KNOW this to be true. He's in Direct Confrontation with the Constitution, AGAIN. Everybody knows it, and yet, so far, nobody's doing anything.
"All that Evil needs, to succeed, is for Good Men to do Nothing."
He doesn't talk with his Cabinet. He doesn't talk with Congressional Leaders. And, why should he? Did King George do these things? Did Napoleon? Did Hitler? Did Kim Jung Il?
If he isn't Stopped now? We're looking at Civil War. Anyone, who LOVES THIS COUNTRY, and would wish this guy harm? Might just find themselves, out of options. There's 360 Million people here. And it only takes 1.
To our Friends at the Secret Service: You know your OATH. It's to the Constitution. It's not to HIM. It's to the Constitution. When you take that Oath, you swear to PROTECT the Constitution from all enemies, both Foreign and DOMESTIC.
How do you Define: Domestic Enemy? What are the Parameters? Can a President, ever be that Domestic Enemy? This President is tearing down the Fabric of this Republic. He has divided us in to 2 Camps. We look more and more like present day IRAQ, than we do, The United States of America. We are running out of time.
I have Faith that GOD will not permit this THING to go on long enough, to Destroy this Country. And I believe that, somewhere out there, someone will do what's right, and put an end to the ATTROCITIES, that are being perpetrated against the American people, on an almost Daily Basis.
This needs to be Fixed, through the Proper Channels of Government - The House and the Senate - and through the Media. Otherwise, in a Country of 360 Million people, someone out there might end up feeling FORCED, to fix it the Wrong Way.
I'm just saying.
Al Adab| 1.5.12 @ 11:28AM
Sadly, many of American voters would welcome a dictator. It allows them to avoid the responsibility which comes with being self-governing citizens.
Timothy L. Pennell| 1.5.12 @ 11:38AM
Sadly, I agree with you.
Should Have Impeached| 1.5.12 @ 10:46PM
'the words of CHRIST: "Men shall know you bye the company you keep".'
Hmmm... What book of the Bible is THAT from? :)
Brian Mc| 1.5.12 @ 8:45AM
Whenever I see a 'wiki-link' I hold up my crucifix and turn away.
nathan| 1.5.12 @ 8:51AM
The most important issue is not the economy, it's not the election, it's not Iran. It's whether we are going to remain free or not. The amendment to the NDAA which McCain inserted and Graham supported and the House passed potentially puts all Americans at risk. This is just one of a string of unconstitutional acts going back to the Bush Administration done in the name "defending the country". Be clear here, any American can now be dragged from their home on the basis of "information" and detained indefinitely in total violation of the Fifth Amendment. When this was debated on the floor of the Senate Rand Paul who understood his oath of office and opposed this was more or less called a traitor by McCain who has been attempting for years to destroy the Bill of Rights starting with McCain/Feingold and his ongoing support for gun control.
All of you who praised the illegal unconstitutional behavior of the Bush/Cheney regime, well this is what inevitably happens when you sacrifice your principles in the name of "good intentions". When you cross lines you don't recross them. When you justify bad behavior for whatever reason, this is what you get. The NDAA gives powers to the president I wouldn't give Madison or Washington and note again the amendment was offered by McCain and it was passed by a republican controlled House.
Years from now when some of you are in the American gulag doing the old soviet joke "how long are you in for?" "20 years" "What did you do?" "Nothing." "You lie, for nothing you only get 15." you can ask yourselves if the defending the country while destroying the Constitution was worth it.
KennesawJack| 1.5.12 @ 5:29PM
Nathan, You worry too much. Obamarx promised us, as he signed it, that he would never use the power. You wouldn't be implying that our new messiah can't be trusted at his word, would you?
vb| 1.5.12 @ 8:52AM
The most important factor we should be considering about our candidate is his ability to work with Paul Ryan and other representatives to formulate and sell real spending reform. It is time to forget the grandiose promises and egoistic flights of fancy and finally crunch the numbers. I want someone who can put a team together and keep it focussed on priorities. If I need a bit of drama, I'll buy myself a few DVDs.
Derek Leaberry| 1.5.12 @ 9:02AM
The paramount issue is that the American government and the American people can not be reformed until the whole facade collapses. A supermajority of Americans want free stuff from the government and they will severely penalize any party which seeks to reform entitlements. So Obama should be allowed to win the presidency, the nation should be allowed to collapse, and a new paradigm should be built on the ashes of the old, discredited world.
Ward Bond| 1.5.12 @ 10:05AM
Mr.Pennell,I think obama is capable of anything.God help us if he is reelected.
Louis Jenkins| 1.5.12 @ 10:21AM
Mr. Pennell and Mr. Ward Bond indicate that Obama is capable of doing anything that he pleases. They are 101% correct. Never, in my life, have I seen a president violate the Constitution and appoint, not one, but three men during the alledged Congressional break (which it wasn't). Every three days someone held a session in Washington DC so there was no break. He couldn't wait to appoint them, even though they're supposed to confirm, and fund, his appointments. The only thing left is for him to publicly proclaim is his bodily excretment as pure gold, and establish a whole new monetary system. The nation groans under the weight of this man. Any one other than Obama next election will be a relief.
Petronius| 1.5.12 @ 10:46AM
The entitlement budget mess will not be solved because the left won't ever allow it. They want a crash so that they can institute confiscation of private fortunes just to sate the ego of every loser in this country. Neither do they care that emotional vindication is not legal tender for any debt. Try paying your bills with empty triumphalism. The pig headed idiots will ruin us all.
Al Adab| 1.5.12 @ 11:30AM
End of private gold ownership (again) and confiscation of wealth are indeed part of the agenda. It covers the inflation necessary to monitize the debt.
Calvin | 1.5.12 @ 11:31AM
I am alittle disappointed in V. Mises Jr.
And applaud Mr. Bill O'S.
I am that middle-aged physician who is calibrating my private practice and personal plans for the inevitable cuts in reimbursement.
Bored old people play canasta on the internet. My patients have benefitted from decades of research and application of really good technology to their illnesses. Sick people live a really long time today thanks in large part to the money the government has thrown at their care.
At the end of life, there is no inducement for them to limit the cost of their care (surgery, life support, medications) because they have been told by government that they deserve it and should not have to pay for it.
The implications of continuing this path cannot be avoided.
Until patients and their families are responsible financially for some (even small) portion of the cost of their care at each point of care, there is noreason to believe that the system can survive.
Back to us middle aged doctors, we are rapidly shutting down our businesses because they are unprofitable. The regulatory burdens (especially the mandate for a govt-mandated electronic medical records) and the falling reimbursement (medicare and medicaid have not made increases in payments to adjust for inlation since the 1980s) are driving us into the arms of hospital systems, replacing small flexible and responsive offices with hospital system inefficiencies.
The government balances future budgets withthe assumption that the govt is going to realize the savings of paying the doctors a lot less.
When that happens, my office closes, or at least has to severely limit access of the elderly to our care; or unhappily, I throw in the towel and go fishing.
Pete| 1.5.12 @ 8:34PM
Well, to a large extent I agree, but the medical profession has used government to knockout its competition. What we need are holistic alternatives that are viable. I am at the point where I would rather pay for acupuncture or naturopathy out of my own pocket than let someone run intrusive tests. Its my choice not the governments. We do not need the FDA intrusions.
Ward Bond| 1.5.12 @ 11:44AM
Al Adab,I think all wealth and property will have a bullseye on it's back in a second obama term. How else are they gonna" spread the wealth around a bit".
tom beebe| 1.5.12 @ 5:41PM
I count myself lucky to be among you, the readers of The American Spectator. While I admire Congressman Ryan, I believe we should pursue total reform of taxes and any transfer payment program, defined as government outlays for other than goods and services received. I'd like to hear YOUR opinions on this plan (aside to sales tax proponents; the only difference between a flat income tax and a sales tax is taxation on money not spent. I prefer the former as it tells us all the total cost of government, rather than death by a thousand cuts, a sales tax.)
1. All persons residing in the U.S. shall come together in households for the purpose of reporting all income from any source, each item to be identified by payer's and payee's tax number, and for receipt of federal and state benefits. Members of a household need not be related, need not reside together, and a household may consist of as few as one person. The federal government shall collect no taxes other than provided in this act. The federal government shall make no payment to any person, group or other entity except in return for goods or services rendered to it, or as provided for in this act.
2. Each year congress shall set by legislation a "minimum wage" and a "tax rate", which in turn will be applied to the previous year’s reported incomes to determine the maximum expenditures of the federal government.
3. The following income shall not be subject to taxation:
• An amount equal to a year's earnings (2000 hours) at the minimum wage rate, for each adult (age 20-65) member of the household, decreasing 10% per year to 50% at age 15, and increasing 10% per year to 150% at age 70.
• All payments for what is classified as necessary health care for all members of the household including medical care, any pharmaceuticals prescribed by a recognized health care professional, vision and hearing aids, and membership fees for health-enhancing entities such as gyms or other exercise facilities. Health care insurance premiums may be deducted but not health care expense paid for by such insurance.
• All educational expenses including day care for young children or legally incompetent persons, that portion of state and local taxes identified as spent on education, that portion of parochial school tuition, fees and other expenses identified as going for non-sectarian education, and tuition, fees and educational materials for private school education at any level.
• All income saved into an identified account from which investments may be made. All withdrawals from this account for the benefit of any member of the household shall be reported as income to that member. Withdrawals, such as for charities, special interest groups, or political campaigns, that do not accrue to members’ benefit, will not be counted as income.
4, The "tax rate" shall be applied to any income over and above the deductions listed above, regardless of amount.
5. For households whose deductions exceed total income, the Federal Government shall make payment equal to the tax rate multiplied by the shortfall in income, as shall municipalities and states, should they elect to add a supplemental tax onto this plan as described below.
6. There shall be no federal tax on corporations or other business entities.
7. At the request, by legislation duly enacted by a municipality having greater than 100,000 inhabitants or a state, a surtax may be imposed on citizens of that municipality or state which shall be applied in the same manner as this tax.
POST American| 1.6.12 @ 6:11AM
--------------------FINAL WORD------------------------
MARK this post:
NDAA 1031 marks the murder, in broad daylight,
of the U.S. Constitution and Bill of Rights.
This following on the 4 decades on,
Globalist-RED China sellout, set up
and TREASON OP.
Time now to lock down, as the scandal,
nature and reality of their plunder emerges.
"When YOUR time comes
--------------WHAT WILL YOU DO------------?"
-IKIRU
Dir: Akira Kurosawa
(1952)
WHAT ---WILL---- YOU DO?
('IKIRU' = 'to live')
'IKIRU' is---------the FINAL WORD. . .
sweeterjanf| 5.29.12 @ 2:05AM
Ryan appreciates the high stakes http://www.lunettesporto.com/ involved with mandatory entitlement spending and has put in the hours of hard thinking on this issue, even now negotiating with an honest liberal such as Senator Ron Wyden (D-OR) to advance the cause of reform.