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  • Video: Paul Ryan Destroys Obamacare's Deficit Reduction Claims

    Yesterday at the Blair House health summit, Rep. Paul Ryan (R-WI) directly challenged the White House’s deficit reduction claims. From the transcript:

    Look, we agree on the problem here, and the problem is health inflation is driving us off of a fiscal cliff. Mr. President, you said health care reform is budget reform. You’re right. We agree with that. Medicare right now has a $38 trillion unfunded liability. That’s $38 trillion in empty promises to my parents’ generation, our generation, our kids’ generation. Medicaid is growing at 21 percent this year. It’s suffocating state’s budgets. It’s adding trillions in obligations that we have no means to pay for it.

    Now, you’re right to frame the debate on cost and health inflation. And in September when you spoke to us in the well of the House, you basically said — and I totally agree with this — “I will not sign a plan that adds one dime to our deficits either now or in the future.”

    Since the Congressional Budget Office can’t score your bill because it doesn’t have sufficient detail, but it tracks very similar to the Senate bill, I want to unpack the Senate score a little bit.

    And if you take a look at these CBO analysis, analysis from your chief actuary, I think it’s very revealing. This bill does not control costs. This bill does not reduce deficits. Instead this bill adds a new health care entitlement at a time when we have no idea how to pay for the entitlements we already have.

    And let me go through why I say that. The Majority Leader said the bill scores as reducing the deficit $131 billion over the next 10 years. First, a little bit about CBO. I work with them every single day. Very good people, great professionals, they do their jobs well. But their job is to score what is placed in front of them. And what has been placed in front of them is a bill that is full of gimmicks and smoke and mirrors.

    Now, what do I mean when I say that? Well, first off, the bill has 10 years of tax increases, about half a trillion dollars, with 10 years of Medicare cuts, about half a trillion dollars, to pay for six years of spending. Now, what’s the true 10-year cost of this bill in 10 years? That’s $2.3 trillion.

    It does a couple of other things. It takes $52 billion in higher Social Security tax revenues and counts them as offsets, but that’s really reserved for Social Security. So either we’re double-counting them or we don’t intend on paying those Social Security benefits. It takes $72 billion and claims money from the CLASS Act — that’s the long-term care insurance program. It takes the money from premiums that are designed for that benefit and instead counts them as offsets. The Senate Budget Committee chairman said that this is a Ponzi scheme that would make Bernie Madoff proud.

    Now, when you take a look at the Medicare cuts, what this bill essentially does is treats Medicare like a piggy bank. It raids a half a trillion dollars out of Medicare not to shore up Medicare’s solvency but to spend on this new government program.

    Now, when you take a look at what this does, it is — according to the chief actuary of Medicare, he’s saying as much of 20 percent of Medicare’s providers will either go out of business or will have to stop seeing Medicare beneficiaries. Millions of seniors who are on — who have chosen Medicare Advantage will lose the coverage that they now enjoy. You can’t say that you’re using this money to either extend Medicare solvency and also offset the cost of this new program. That’s double-counting.

    And so when you take a look at all of this, when you strip out the double-counting and what I would call these gimmicks, the full 10-year cost of this bill has a $460 billion deficit. The second 10-year cost of this bill has a $1.4 trillion deficit.

    And I think probably the most cynical gimmick in this bill is something that we all probably agree on. We don’t think we should cut doctors 21 percent next year. We’ve stopped those cuts from occurring every year for the last seven years. We all call this here in Washington the “doc fix.” Well, the doc fix, according to your numbers cost $371 billion. It was in the first iteration of all these bills. But because it was a big price tag, and it made the score look bad, made it look like a deficit, that provision was taken out, and it’s been going on as stand-alone legislation. But ignoring these costs does not remove them from the backs of taxpayers. Hiding spending does not reduce spending.

    And so when you take a look at all of this, it just doesn’t add up. And so let’s just — I’ll finish with the cost-curve. Are we bending the cost curve down or are we bending the cost curve up? Well, if you look at your own chief actuary at Medicare, we’re bending it up. He’s claiming that we’re going up $222 billion — adding more to the unsustainable fiscal situation we have.

    And so when you take a look at this, it’s really deeper than the deficits or the budget gimmicks or the actuarial analysis. There really is a difference between us. And we’ve been talking about how much we agree on different issues, but there really is a difference between us. And it’s basically this: We don’t think the government should be in control of all of this. We want people to be in control. And that, at the end of the day, is the big difference.

    Now, we’ve offered lots of ideas all last year, all this year, because we agree the status quo is unsustainable. It’s got to get fixed. It’s bankrupting families. It’s bankrupting our government. It’s hurting families with preexisting conditions. We all want to fix this. But we don’t think that this is the answer to the solution. And all of the analysis we get proves that point.

    Now, I will just simply say this — and I respectfully disagree with the Vice President about what the American people are or are not saying, or whether we’re qualified to speak on their behalf. So we are all representatives of the American people. We all do town hall meetings. We all talk to our constituents. And I’ve got to tell you, the American people are engaged. And if you think they want a government takeover of health care, I would respectfully submit you’re not listening to them.

    So what we simply want to do is start over, work on a clean sheet of paper, move through these issues step by step, and fix them and bring down health care costs and not raise them. And that’s basically the point.

    Ryan’s above numbers are from the Senate bill as it is currently before the House. James Capretta has done his own analysis of the President’s new plan released Monday and found a $2.5 trillion price tag:

    The President argues that expeditious enactment of his plan is necessary to provide better services to the uninsured, but none of the key provisions to expand coverage would go into effect until 2014. Meanwhile, many of the spending reductions, such as the cut in Medicare Advantage payment rates, would kick in much earlier, as would the tax increases. Consequently, the President’s plan has 10 years worth of spending and revenue “offsets” paying for only seven years worth of spending.

    Looking at these bills over a true 10-year window of full implementation reveals much higher costs. The Senate bill’s provisions–even excluding the “doc fix”–would total $2.3 trillion over the period 2014-2023, with the coverage provisions fully in place.[1]Adding the “doc fix,” the Obama team’s admitted $75 billion add-on, at least $90 billion in non-coverage spending, and $72 billion for the CLASS Act, the true 10-year cost of the President’s plan is almost certainly over $2.5 trillion.

    Posted in Ongoing Priorities [slideshow_deploy]

    11 Responses to Video: Paul Ryan Destroys Obamacare's Deficit Reduction Claims

    1. Drew Page, IL says:

      Representative Ryan's analysis is correct. I believe that President Obama's remarks at the blair House health summit yesterday were as disingenuous as those he made while campaigning for office. He feels that he should not be reminded or held accountable for failing to live up to the promises he made while canpaigning.

      Mr. Obama calls for "bipartisan" support to pass health care reform legislation, monopolizes the time allowed for debate ("since I am the President"), trys to act as a moderator of the debate, but then jumps in to participate in the debate. He came into the debate with a trump card, reconciliation, ending the session by saying in so many words that "if you won't agree to my plan, we (the Dems) will pass it anyway. That's what elections are for.". So that's it America, my way or the highway. If you don't like it vote us out, if you can.

    2. JIM, ATLANTA says:


    3. Stan Wilson says:

      Paul Ryan's comments were an incredibly clear explanation of the bogus nature of the proposed "hell-thcare" legislation from the Democrats in Congress. I did not really appreciate the scope of the crisis that we are facing as a country until I heard his comments.

      Perhaps, Nancy Pelosi and Harry Reed should hire some economists to explain to their caucuses the horrific impact of their proposals.

    4. jim d, atlanta says:


      Charley Reese has been a journalist for 49 years.

      545 PEOPLE

      By Charlie Reese

      Politicians are the only people in the world who create problems and then campaign against them.

      Have you ever wondered, if both the Democrats and the Republicans are against deficits, WHY do we have deficits?

      Have you ever wondered, if all the politicians are against inflation and high taxes, WHY do we have inflation and high taxes?

      You and I don't propose a federal budget. The president does.

      You and I don't have the Constitutional authority to vote on appropriations. The House of Representatives does.

      You and I don't write the tax code, Congress does.

      You and I don't set fiscal policy, Congress does.

      You and I don't control monetary policy, the Federal Reserve Bank does.

      One hundred senators, 435 congressmen, one president, and nine Supreme Court justices equates to 545 human beings out of the 300 million are directly, legally, morally, and individually responsible for the domestic problems that plague this country.

      I excluded the members of the Federal Reserve Board because that problem was created by the Congress. In 1913, Congress delegated its Constitutional duty to provide a sound currency to a federally chartered, but private, central bank.

      I excluded all the special interests and lobbyists for a sound reason.. They have no legal authority. They have no ability to coerce a senator, a congressman, or a president to do one cotton-picking thing. I don't care if they offer a politician $1 million dollars in cash. The politician has the power to accept or reject it. No matter what the lobbyist promises, it is the legislator's responsibility to determine how he votes.

      Those 545 human beings spend much of their energy convincing you that what they did is not their fault. They cooperate in this common con regardless of party.

      What separates a politician from a normal human being is an excessive amount of gall.. No normal human being would have the gall of a Speaker, who stood up and criticized the President for creating deficits.. The president can only propose a budget. He cannot force the Congress to accept it

      The Constitution, which is the supreme law of the land, gives sole responsibility to the House of Representatives for originating and approving appropriations and taxes. Who is the speaker of the House? Nancy Pelosi. She is the leader of the majority party. She and fellow House members, not the president, can approve any budget they want. If the president vetoes it, they can pass it over his veto if they agree to.

      It seems inconceivable to me that a nation of 300 million cannot replace 545 people who stand convicted — by present facts — of incompetence and irresponsibility. I can't think of a single domestic problem that is not traceable directly to those 545 people. When you fully grasp the plain truth that 545 people exercise the power of the federal government, then it must follow that what exists is what they want to exist.

      If the tax code is unfair, it's because they want it unfair..

      If the budget is in the red, it's because they want it in the red ..

      If the Army & Marines are in IRAQ , it's because they want them in IRAQ

      If they do not receive social security but are on an elite retirement plan not available to the people, it's because they want it that way.

      There are no insoluble government problems..

      Do not let these 545 people shift the blame to bureaucrats, whom they hire and whose jobs they can abolish; to lobbyists, whose gifts and advice they can reject; to regulators, to whom they give the power to regulate and from whom they can take this power. Above all, do not let them con you into the belief that there exists disembodied mystical forces like "the economy," "inflation," or "politics" that prevent them from doing what they take an oath to do.

      Those 545 people, and they alone, are responsible.

      They, and they alone, have the power.

      They, and they alone, should be held accountable by the people who are their bosses.

      Provided the voters have the gumption to manage their own employees.

      We should vote all of them out of office and clean up their mess!

      Charlie Reese is a former columnist of the Orlando Sentinel Newspaper.

      What you do with this article now that you have read it……….. Is up to you.

      This might be funny if it weren't so darned true.

      Be sure to read all the way to the end:

      Tax his land,

      Tax his bed,

      Tax the table

      At which he's fed.

      Tax his tractor,

      Tax his mule,

      Teach him taxes

      Are the rule.

      Tax his work,

      Tax his pay,

      He works for peanuts


      Tax his cow,

      Tax his goat,

      Tax his pants,

      Tax his coat.

      Tax his ties,

      Tax his shirt,

      Tax his work,

      Tax his dirt.

      Tax his tobacco,

      Tax his drink,

      Tax him if he

      Tries to think.

      Tax his cigars,

      Tax his beers,

      If he cries

      Tax his tears.

      Tax his car,

      Tax his gas,

      Find other ways

      To tax his ass.

      Tax all he has

      Then let him know

      That you won't be done

      Till he has no dough.

      When he screams and hollers;

      Then tax him some more,

      Tax him till

      He's good and sore.

      Then tax his coffin,

      Tax his grave,

      Tax the sod in

      Which he's laid

      Put these words

      Upon his tomb,

      Taxes drove me

      to my doom…'

      When he's gone,

      Do not relax,

      It's time to apply

      The inheritance tax.

      Accounts Receivable Tax

      Building Permit Tax

      CDL license Tax

      Cigarette Tax

      Corporate Income Tax

      Dog License Tax

      Excise Taxes

      Federal Income Tax

      Federal Unemployment Tax (FUTA)

      Fishing License Tax

      Food License Tax

      Fuel Permit Tax

      Gasoline Tax (currently 44.75 cents per gallon)

      Gross Receipts Tax

      Hunting License Tax

      Inheritance Tax

      Inventory Tax

      IRS Interest Charges IRS Penalties (tax on top of tax)

      Liquor Tax

      Luxury Taxes

      Marriage License Tax

      Medicare Tax

      Personal Property Tax

      Property Tax

      Real Estate Tax

      Service Charge Tax

      Social Security Tax

      Road Usage Tax

      Sales Tax

      Recreational Vehicle Tax

      School Tax

      State Income Tax

      State Unemployment Tax (SUTA)

      Telephone Federal Excise Tax

      Telephone Federal Universal Service Fee Tax

      Telephone Federal, State and Local Surcharge Taxes

      Telephone Minimum Usage Surcharge Tax

      Telephone Recurring and Non-recurring Charges Tax

      Telephone State and Local Tax

      Telephone Usage Charge Tax

      Utility Taxes

      Vehicle License Registration Tax

      Vehicle Sales Tax

      Watercraft Registration Tax

      Well Permit Tax

      Workers Compensation Tax


      Not one of these taxes existed 100 years ago, and our nation was the most prosperous in the world. We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids.

      What in the hell happened? Can you spell 'politicians?'

      And I still have to 'press 1' for English!?

      I hope this goes around THE USA at least 100 times!!! YOU can help it get there!!!

      GO AHEAD – - – BE AN AMERICAN!!!

    5. Pingback: Health Reform That Breaks the Bank | Fix Health Care Policy

    6. Pingback: Protecting Liberty in the USA » Blog Archive » The Obamacare and Obama Tax Hike Double Whammy on Seniors

    7. Pingback: The Obamacare and Obama Tax Hike Double Whammy on Seniors | Just Piper

    8. Rich, Reno says:

      About 50% of what he says is total bull! He quotes "Senate says", which is partisan, and mentions "hurting Americans", which is opinion, as usual, not fact. I'm so tired of never seeing fact, only opinion.

      The republicans screwed healthcare reform by making certain the insurance companies get their usual 1/3 of all of the healthcare expenses. So much money was spent lobbying republicans via false claims like "we have the best healthcare", and "Canada healthcare doesn't work", and "government death squads", that we didn't get real reforms. The facts are that we have terrible heath care compared to ALL other industrialized nations, Canadian healthcare DOES work and work well, and death squads are already in place by insurance companies who deny coverage while awarding million dollar bonuses to those who deny coverage. I'm one of those who can't get private insurance because of some small thing that happened 7 years ago. So I risk losing my entire life savings if anything serious happens to me.

      Sorry, but this guy doesn't speak the truth, has been obstructionist to any real reform, so why listen to anything he says?

    9. Pingback: » Paul Ryan Wins All Three Presidential Debates - Big Government

    10. Pingback: Paul Ryan Wins All Three Presidential Debates | Conservatives for America

    11. Pingback: Conservative News from Conservative Bloggers » Blog Archive » Paul Ryan Wins All Three Presidential Debates

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