Trump’s Broken Promises. (Part Two – Health Care)

Of the thousands of falsehoods and misleading statements Trump has made since declaring his candidacy, many concern health insurance and health care. Following are but a few of his broken promises:

Insurance Premiums: Trump promised to allow individuals to deduct health insurance premiums from taxes. He hasn’t.

Affordable Care Act: Trump promised he’d repeal and replace the ACA with something “beautiful” that would provide “insurance for everybody.” But he has offered no replacement. Further, his administration has chosen to not defend the ACA in court against claims by several rightwing state Attorneys General that the ACA is unconstitutional. If the courts rule in favor of the plaintiffs, up to 20 million Americans will lose access to affordable health care.

Pre-Existing Conditions: Trump promised to protect all Americans who suffer from pre-existing medical conditions. But, if the ACA is ruled unconstitutional as Trump hopes, private insurers will, once again, be able to deny coverage to tens of millions of Americans for pre-existing conditions.

Medicare and Medicaid: Trump promised that he wouldn’t “cut Social Security or Medicare or Medicaid as other Republicans want.” But his 2020 budget cuts $1.5 trillion from Medicaid over the next 10 years, $845 billion from Medicare over 10 years, and $25 billion from Social Security over 10 years. Moreover, he recently said that he will take a look at more cuts to Medicare and Social Security at the end of this year, presumably after the election.

Social Security Disability Insurance: Despite Trump’s promises, his budget cut retroactive pay for disabled under Social Security Disability Insurance (SSDI) by 50 percent over a 10-year period which began in 2019. Retroactive pay covers the time between when people are unable to work and when they apply for benefits. These cuts, along with cuts to SNAP (food stamps), will impose great financial harm to the disabled.

Drug Prices: Trump promised he’d cut drug prices by negotiating “like crazy” with drug companies. He hasn’t. Instead, drug prices have gone up and the catastrophic Medicare Part D threshold (the so-called donut hole) has risen by $1,250 in 2020.

Given his many lies and broken promises, why would anyone trust anything Trump says? As Senator Romeny once said, “His promises are as worthless as a degree from Trump University.”

Destruction Of The US. (Part Six – Deficits & Debt)

When President Obama took office, the economy was in flames. Unemployment was soaring and entire industries were in jeopardy. Indeed, the entire world economy was on the verge of collapse. In order to help stem the bleeding, the Obama administration, the Democratic-led Congress and the Federal Reserve implemented a series of stimulus actions, including tax cuts. Those actions temporarily added to the deficit. But they were necessary. Nevertheless, Republicans howled about the “wasteful spending.”

By contrast, Trump inherited a healthy economy and declining deficits. Instead of allowing interest rates to gradually rise, raising taxes to increase revenue and doing what most economists recommended, he orchestrated a massive tax cut for corporations and the very wealthy. Contrary to his grandiose promises and projections, the economy did not noticeably change. Rather, it continued on the same path begun under Obama. What did change was federal revenue, which dramatically dropped. At the same time, deficits soared. The deficit for 2020 is $1.10 trillion and the national debt has now surpassed $22.5 trillion!

And what do you hear from those Republican deficit hawks now? Crickets.

What we are beginning to hear from Republicans is that we must reign in “entitlements” – those safety net programs for the elderly and the poor. They say they want to make serious cuts to Social Security and Medicare. They want to cut food stamp benefits for 3.1 million Americans. They want to cut lunch programs for school children. And they want to end the Affordable Care Act, which made health care affordable for millions of Americans.

In other words, they now seem intent on punishing the poor while continuing to give away hundreds of billions to the Pentagon, an organization that cannot account for trillions in past spending. They want to continue giveaways for corporations. And many Republicans have even stated that they plan to further cut taxes for the very wealthy.

If they are successful, it will mean that the federal deficits and the debt will continue to soar while more ordinary Americans will suffer. Seniors will struggle to pay bills, even to eat. Poor men, women and children will struggle more. The number of homeless will continue to grow. And middle class Americans will not only be asked to make up for the lost revenue with higher taxes. The number of people in the middle class will dramatically decline.

But you can be certain that the incomes of Trump, his family and his wealthy friends will continue to grow.

The Entitlement Lie.

For many years, Republicans have been determined to privatize Medicare and Social Security or get rid of the programs altogether. So whenever Republicans talk about federal spending, they usually show a chart that looks something like this:

Notice that the two largest slices of the budget represent Social Security, Medicare and Medicaid, or what is often called “mandatory” federal spending. Thus, the chart would seem to indicate that most of the tax revenue goes toward healthcare and retirement for the elderly and the poor. Is it any wonder, then, that so many young people believe that the federal government is being “bankrupted” by payments to senior citizens?

However, most of the costs for Medicare and Social Security are not part of the general budget.

Medicare and Social Security are, in fact, insurance programs similar to your auto, health and household insurance policies. And, like your other insurance policies, the premiums for Medicare and Social Security are collected each year of your working career so the benefits will be there when you need them. The premiums are deducted from our paychecks – you know, the ones that are labeled FICA (Federal Insurance Contributions Act) and Medicare. As a result, Medicare and Social Security are “entitlements” only in the sense that once you have paid the premiums, you are entitled to the benefits in much the same way you’re entitled to benefit from claims against your Allstate, GEICO, Progressive or State Farm policies.

Since the programs pay for themselves, their budgets should be kept entirely separate from the general budget. To more accurately reflect reality, the federal spending chart should look like this:

This chart represents the spending controlled by Congress and paid for through taxation. As you can see, in this chart, the majority of that spending is for our military ($824.6 billion, up more than 13 percent since Republicans have taken the reins of government) and veteran’s benefits ($78.9 billion). When Congress spends more on these items than it collects in taxes, it results in deficit-spending. The shortfalls result in borrowing from other sources – from other countries and from the Medicare and Social Security trust funds.

Despite their claims to the contrary, Republicans have been particularly good at deficit spending. Reagan nearly doubled the federal debt, increasing it by $1.9 trillion. George W. Bush increased the debt by $5.8 trillion. He also left his successor with two wars and the Great Recession resulting in more than $8.5 trillion of additional borrowing. And, in his first two years in office, Donald J. Trump has already doubled the deficit, increasing the debt by more than $1.2 trillion. And the 10-year cost of the Trump tax cuts will add an estimated $2.3 trillion more to the federal debt.

In order to reduce the debt, Senate Majority Leader Mitch McConnell says he wants to balance the federal budget by cutting payments to “entitlements,” aka Social Security, Medicaid and Medicare.

Say what????!!!!

That would be akin to embezzling money from your employer to pay for your own spending excesses. The Social Security and Medicare trust funds are not Congress’s money!

None of this is to say that Medicare and Social Security don’t have their own problems. If changes are not made, it’s expected that Medicare will exhaust its reserves by 2028. Likewise, it’s expected that Social Security will not be able to meet its full obligations after 2034. But that does not mean that there will be no money left for the programs’ beneficiaries. It simply means that the payouts will be less.

And both programs could meet their obligations with a few tweaks.

Like all insurance programs, they should be governed by actuarial tables. When the costs go up, so should the premiums. Unfortunately, Congress has put limits on the amount of money the programs can charge for premiums. For example, FICA deductions only apply to the first $128,400 of an individual’s income. Social Security could be fixed by simply removing the cap. It’s that simple.

Similarly, Medicare’s impending problems could be solved by increasing the payroll deductions, by negotiating for better prices with pharmaceutical companies, or, better yet, we could improve outcomes while saving our government and our citizens trillions of dollars by moving toward universal health care.

And, here’s a radical idea: Maybe we could find additional money for these programs in the general budget by holding government contractors accountable. For example, the F-35 fighter jet program was $163 billion over budget as of 2014. A figure that continues to climb faster than the plane.