Archive | Bulletins

Top Five Myths about Reducing Our $16 Trillion National Debt

Posted on 16 February 2011

  1. We Can Use Income Taxes Alone to Reduce the Debt
    No less an authority than Erskine Bowles, the co-chair of the President’s Fiscal Commission and chief of staff to former President Clinton, has admitted that the US cannot tax its way out of debt.
    [Prove it…]

  2. We Can Reduce the Debt Without Reforming Social Security and Medicare
    A CBO projection shows that the country is on a path where spending on entitlement programs, like Medicare and Social Security, could eventually consume every dollar of tax revenue that the US brings in. Plainly, a debt-reduction plan that ignores these two programs is no plan at all.
    [Prove it…]

  3. Repealing the Health Care Law Will Increase the National Debt
    The health care law will require over $2 trillion in new spending in its first full decade. The misleading claim that this new entitlement can reduce our national debt—and that repealing it will increase our debt—is supported only by budget gimmicks, unrealistic Medicare cuts, and hundreds of billions in new taxes and fees.
    [Prove it…]

  4. We Can Solve Our Debt Crisis By Making the Government More Efficient
    Reducing our national debt by making the federal government more efficient has a nice ring to it—deficit reduction without the painful sacrifice. In reality, these cuts do almost nothing to address what the CBO has identified as the three long-term drivers of our budget deficits: Social Security, Medicaid, and Medicare.
    [Prove it…]

  5. The US Can Afford Higher Interest Rates
    In February of 2010, Treasury Secretary Timothy Geithner confidently predicted that the US would “never” lose its perfect AAA credit rating. Yet that’s exactly what happened, when credit rating agency Standard & Poor’s downgraded our rating from AAA to AA+. The cost of the other agencies following suit—for our government, and for our individual pocketbooks—would be tremendous.
    [Prove it…]

National Debt & Personal Consequences

Posted on 23 July 2010

Our national debt is now over $16 trillion.

How big is a trillion? Think of it this way: one million seconds will pass in the next twelve days; One trillion seconds will take over 30,000 years to pass us by.

Congress has accumulated this $16 trillion debt by consistently spending more money than we receive in taxes. In 2010 our government brought in $2.2 trillion in taxes. We spent $3.5 trillion. That means we borrowed $1.3 trillion to make up the difference.

We owe these enormous sums of money to lenders in the US and abroad, including countries like China, Russia and Saudi Arabia — countries that may not have our best interests in mind.

Accumulating this much debt won’t just mean that the accountants at the Treasury Department will have to purchase bigger calculators. There are serious personal consequences for you and your family.

  • More Debt Means Higher Taxes. [Prove it…]
  • More Debt Means Higher Interest Rates: [Prove it…]
  • More Debt Means Fewer Jobs: [Prove it…]
  • More Debt Can Erode Your Life Savings: [Prove it…]
  • More Debt Makes Your Family Less Secure: [Prove it…]
  • More Debt Puts Your Health Care At Risk: [Prove it…]

The National Debt and Health Care: What You Need To Know

Posted on 17 June 2010

Advocates of the new health care law claim it will reduce both health care premiums and the federal budget deficit. But these claims don’t square with the facts. Here’s how Congress’ new health care law will impact your family:

Increase the $14 Trillion National Debt

Congressional Budget Office (CBO) director Doug Elmendorf made news recently when he warned about the pressure that rising health care costs put on the federal budget. His conclusion? “In CBO’s judgment, the health legislation enacted earlier this year does not substantially diminish that pressure.”

These are strong words from the always-measured CBO director. And due to budget gimmicks that Congress used when writing the health care law, the news about health care and our federal deficit may be even worse. When all gimmicks are accounted for, former director of the CBO Douglas Holtz-Eakin calculated that the health care bill will increase budget deficits by $562 billion in the next ten years.

Raise Taxes

Starting in 2011, the new health care law will levy over $100 billion in new medical taxes & fees, according to Congress’ Joint Committee on Taxation (pdf). A report from Medicare’s actuary projects that consumers will ultimately pay these fees through more expensive medical devices (think: pacemakers and specialty wheelchairs), health care premiums, and prescription drugs.

Put Your Benefits at Risk

Authorities ranging from the government’s Medicare actuary to the authors of the President’s health care regulations have acknowledged that millions of Americans will lose their current health coverage under the new health care law.

Decrease Your Retirement Security

Over 37 million retired Americans depend on programs like Medicare and Medicare Advantage to provide health care into their old age. But the new health care law makes their retirement less secure. Over $500 billion has been cut from Medicare, in the form of lower reimbursements for medical providers and lower payments to Medicare Advantage plans.

Medicare’s actuary has warned that the lower provider reimbursements are unrealistic, and could create a shortage of care for seniors. And the consequences of the Medicare Advantage cuts are already here – increased prices and decreased benefits going forward.