Service Members Home Ownership Tax Act Of 2009
Mr. President, following up on that, I happened to see Governor Schwarzenegger on television today. He said he had initially been inclined to support this legislation until he realized what it would do to his Medicaid budget in…
Mr. President, following up on that, I happened to see Governor Schwarzenegger on television today. He said he had initially been inclined to support this legislation until he realized what it would do to his Medicaid budget in California--it would cost them $3 billion and they do not have that $3 billion. Indeed, they didn't have the money necessary to meet their current obligations under Medicare.
Therefore, I ask unanimous consent that the pending amendment be set aside and it be in order to offer an amendment to extend to the State of California the same benefit that provides 100 percent Federal funding to the State of Nebraska for their expanded Medicaid Program. This would give the same treatment to California as Nebraska would obtain.
Mr. President, I think I would be remiss if I did not ask unanimous consent that the amendment be set aside and that these provisions be extended to my State of Alabama which is also in a serious condition financially and whose Governor has expressed unequivocal opposition to the burdens on the State Medicaid Program that passing this legislation would impose. I ask unanimous consent that the same benefit that provides 100 percent Federal funding to the State of Nebraska for their expanded Medicaid Program apply to the State of Alabama.
Mr. President, why are we here voting tonight at 1 a.m. and probably voting all the way to Christmas Eve? I think the answer fundamentally is on the health care matter, that after much talk about a bipartisan health reform effort and some work toward that end, the President and the Democratic leadership in the Congress decided they had the majorities in the House and the Senate and that they would use those majorities to pass the legislation that they wanted without Republican input. I know that has happened on occasion around this Senate, but I don't believe it has ever happened on a matter of such significance.
These major kinds of policy matters have historically been bipartisan or had substantial bipartisan support. We are talking about health care, involving every American. We are talking about raiding, not strengthening, Medicare, a program that is already in deep trouble. We are talking about a major governmental intervention into one-sixth of the American economy. These are pretty big issues.
Even more significantly, our Democratic colleagues are concerned about the American people, who, by consistent majorities, reject this plan. They are fearful of them. So they want to move this bill forward now, sooner, faster, quicker, with less discussion and less debate. Instead of working together to improve a broken health care system, the decision has been reached to railroad this bill through before Christmas.
They say the President promised reform. He was elected and so they will just ram it through no matter what the American people, for that matter, think.
Just for example, a recent CNN poll--I do not think that is a rightwing entity--61 percent oppose the Senate bill, only 36 percent support it. Just a little more than one-third support and over 60 percent oppose. Those are lower numbers than President Bush received for his plan to reform Social Security.
So, why do they do this? Well, because they think they know better than you do, because they want to make history. And if you object--as the Senator from Rhode Island said this morning--you and the rabble disagree with us, why, you are mean-spirited, coldhearted, and fearful--as to whatever those words were--you are just like those great unwashed whom you represent. So I think there is an unusual amount of disdain here for any political and substantive disagreement about this incredibly important legislation and I think a disdain for the concerns of the American people, as represented in rallies, in tea parties, and in polling data.
Is this all just illogical fear? Are these people totally irresponsible to worry about the future financial condition of their children?
A colleague of mine showed me this great cartoon that showed a man standing beside Santa Claus, and Santa said: What would you like? I think the man was President Obama. And he said: Health care. And there was also a little boy, sitting on Santa's lap, and he said: What do I get? And Santa said: You get the bill.
Well, the people know this is a significant issue for the future direction of our country, and I think they are saying that this what not what they intended during the last campaign. I remember this defining moment--do you not?--when Joe the plumber accosted President Obama, and they discussed redistributing the wealth around. And what an effort there was to suggest that President Obama did not really believe in that idea, but that he believed in freedom and individual responsibility and was not going to tax the average person, and those kinds of things. So the campaign survived that little dust-up.
But I think the American people are saying: Fool me once--during the campaign--shame on you. Fool me twice, shame on me. They are not happy with this bill. Polls show the tea parties are more popular than the Republican or Democratic Parties. So I think this use
of raw power--the idea that we must get this bill done before Christmas, and we will pay any price necessary to get the votes to do it--is not good.
I am amazed that people would criticize those of us who do not agree with this legislation--and I am prepared to talk at some length about the substantive reasons about it--that we are somehow obstructionist because we would like to have more than 1 day, really, to consider a 383-page amendment and see what all was placed in it.
So my colleagues have been saying the people are misinformed and they have been subjected to lies and misinformation. Well, just a few days ago, I heard the President declare that if you do not pass this legislation, your insurance premiums are going to go up, which is not untrue. But what he did not convey--and I think most people understand already, however--is that even if the bill passes, premiums will go up some, double digits more than they would have gone up if the bill had not passed. A few people will see a modest--less than 1 percent, maybe some over 1 percent--reduction in the rate of increase in their insurance premium, but a lot of people are going to see double-digit increases in their premium, particularly the people who are not in group plans. Those are the ones for whom insurance premiums are the most unfair and who are getting rooked the most by insurance. We ought to be taking care of this problem because they are not in group plans and they are not in companies that subsidize it. They do not work for the government that subsidizes their health care.
But the President has the bully pulpit. He lectured the whole Congress. He hauled us out and talked about it in a joint address to Congress. He got $150 million from the big PhRMA drug companies to advertise in support of this bill, as it has been reported. Robert Reich, a great liberal, Secretary of Labor under President Clinton, scathingly condemned that deal that PhRMA made with the White House over the doughnut hole and their contribution for advertising.
I will just have to say, the majority has found no price too high, no depth too low in order to get that 60th vote so they can go forward. And we have got to get it done now, pass this managers' amendment that the majority leader has plopped down--the one that was written in secret and we just saw yesterday morning at about 10 o'clock.
Well, I will just say, how should we judge the overall merits of the bill? How should we decide whether to vote for it or against it? I would say that one good way is to judge it by its own promises, to judge it by what the American people have been told the bill will do, how much it will cost, and those kinds of things.
Well, there are some facts and some fictions here. We just need to be frank about it.
Fiction No. 1: We have been told that the total cost of the legislation is $871 billion. That is a lot of money, $871 billion. But what are the facts? When the new programs created by this bill are fully implemented, the bill will actually cost, over the first 10 years of full implementation, $2.5 trillion--three times as much.
Now, who is giving the best numbers here? Since we know most of the benefits do not start until 5 years from now, they score the first 10 years of the budget, the cost of the bill, and say it costs $871 billion. But if you take it from the first 10 years of the bill, as we would normally score a piece of legislation, it is $2.5 trillion-- $2,500 billion. That is a stunning difference. It just shows what a massive piece of legislation this bill is.
According to the bill, Medicaid will be expanded up to 133 percent of the poverty level, but that will not happen until 2014. The insurance subsidies funded by the bill do not begin until 2014. So this is how they manipulated the numbers. So they say $871 billion. Not so. In fact, the managers' amendment increases Federal spending on health care to $200 billion rather than $160 billion projected under the original bill that came forward.
So we currently spend one-sixth of our GDP on health care. How much more can we afford to pay? And wasn't the original intent to rein in health care spending, to reduce the percentage of GDP going to health care?
Mr. President, how much time is left on this side?
The business community as well as many others are expressing concern about the fact that this bill would not actually rein in health care spending. I thought the goal and I think most Americans thought the goal of the legislation was to figure ways to contain the growing cost of health care in America without reducing our quality and the magnificent care so many Americans receive. But it does not do that. In fact, the numbers show, independent accounts show that the percentage of our national wealth, our GDP, that will go to health care once this bill is passed--if it is--will be greater than if it is not passed. We should wrestle with those issues and do better.
What about another fiction? The President had promised--you have heard him--along with other leaders on this floor: This bill will not add one dime to the Nation's surging debt. But by any fair analysis, the bill increases both spending and debt.
First, I just have to say, when you pass 70 new government programs, expand Medicaid, and create millions of dollars in new subsidies, how can that not increase spending? But the bill is structured in a way so that its spending is covered by its new $519 billion in taxes. Well, if you raise taxes enough, you can make anything come out to a balance. They call some of these taxes fees, but they are still taxes and increased cost in the system. They include a $6 billion annual tax on the insurance industry as a whole. For the people we want to reduce premiums, we raise taxes on them $6 billion. It includes a $2.3 billion annual tax on the pharmaceutical industry. We would like to see less cost for drugs, not more. It includes taxes on medical device companies, $28 billion on employers that do not provide enough coverage according to the new standards and a 40-percent tax on plans that provide too much coverage, and $43 billion in total taxes raised through penalties on employers and individual mandates. All in all, you are taxed if you sell insurance, taxed if you buy it at the wrong level, and taxed if you do not buy it at all. Yet, contrary to promises, the bill does not lower individual family premiums, and for many, their out-of-pocket costs will increase. So this is not the kind of reform we were promised.
But one more thing. Always a part of health care reform was the acknowledged necessity to do something about the reductions in payments, reimbursements to doctors. This bill proposes cutting physicians' pay 21 percent. That is what it does--they ignore a $250 billion cost, and act as though they can use that money for the bill's new programs. But doctors were promised from the beginning that their payment reimbursements would be fixed. They cannot sustain a 21-percent reduction in pay. Doctors will quit doing Medicare work all over the country if that occurs.
I will be glad to yield.
That is correct.
Exactly correct. What we are doing, I think you can say fairly--boil it down to this--we are raising taxes over $500 billion, we are cutting Medicare nearly $500 billion--so, around $1 trillion total. And we are using none of that money to fix the doctor payment deficit we know has to be fixed. Instead that money is going to new programs. We cannot cut the doctors 21 percent. Congress has filled that money in every year for nearly 10 years now, and we have to fill it in in the future. Any good health care reform would do what it promised to do from the beginning, which was to eliminate this cut.
One proposal has been to do it simply by adding, throwing it to the debt.
I will be pleased to.
Absolutely.
Exactly. The President looked the American people in the eye and he said: This legislation will not add one dime to the national debt.
Mr. President, if I could ask for 30 seconds to finish.
So the President promised to end the doctors coming to Washington every year to try to make sure they don't get cut 21 percent, but he has not done it. This bill's promises simply do not add up. This bill, when you assume the doctor fix, clearly adds to the debt. It must be added as part of the reform. There are a number of reasons to oppose the legislation, and I urge my colleagues to do so.
I yield the floor.