Washington, DC -- U.S. Representative Judy Biggert (R-13th-IL) today issued the following statement regarding the Path to Prosperity, the House GOP budget proposal for Fiscal Year 2012, which cuts $6.2 trillion in spending from the president's budget over the next 10 years:

            “This budget does the one thing that Washington has consistently failed to do for years: deal with reality.  For too long, government has spent the taxpayers into a debt they cannot afford, and the result has been a drag on our economy and record unemployment.  It’s time to turn this behemoth around, provide relief to taxpayers, and give American businesses the certainty and stability they need to create jobs.

            “No plan that cuts spending will be universally popular, but there is much to like in this budget.  It protects the Medicare and Social Security benefits of our seniors, it simplifies the tax code, it ends the bailouts of Fannie and Freddie, and it places the highest priority on job creation and job training.  In fact, the Heritage Center for Data Analysis estimates that it would create one million private-sector jobs next year alone. Most importantly, it reduces our crushing debt over a realistic time period and forces the government to live within its means. 

            “The president’s budget doubles the debt and imposes $1.5 trillion in new taxes.  The GOP plan simply does for our children and grandchildren what our parents did for us – spend at historically sustainable levels of about 20 percent of the gross domestic product – the post-WWII average.  Every generation faces challenges, whether it’s war, disease, depression, or social turmoil.  But every generation of Americans has met those challenges and left behind a stronger legacy for the future.  Don’t we owe it to our children to do the same? 

            “I stand ready to work with those on both sides of the aisle to craft a fiscal plan that deals with reality, creates jobs, and preserves the financial security of future generations.”

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Myth VS. Reality: The GOP Budget on Social Security, Medicare, & Medicaid

According to press reports, leading opponents of fiscal restraint in Washington quickly launched misleading attacks against the fiscal year 2012 GOP budget plan introduced by Budget Committee Chairman Paul Ryan.  Three deceptive claims, including facts about how the plan works to ensure the long-term sustainability of senior health and retirement programs, are outlined below.  For more information about “The Path to Prosperity” budget proposal, visit: http://www.gop.gov/budget/

Myth: The budget would “privatize” Social Security and/or Medicare.

 Reality:This budget does not privatize Social Security or Medicare, nor does it propose any changes to these programs for Americans 55 and older. The government guarantee remains in place for both of these programs. It protects both of these programs for those 55 and older and saves them so they can provide benefits to future generations of Americans when they retire.

This budget spends more each year on Social Security and Medicare than the year before and, each year, beneficiaries will receive more than the year before. But this budget does so in a fiscally responsible manner that ensures the long-term sustainability of these programs. Failing to act—as the President’s budget does would undoubtedly mean the end of these programs as we know them. According to the Social Security Trustees, “If no substantial action is taken until the combined trust funds become exhausted in 2037, then changes necessary to make Social Security solvent over the next 75 years will be concentrated on fewer years and fewer generations.” Without immediate action, the trustees report that Social Security beneficiaries will either see a 22 percent benefit cut or a corresponding hike in payroll taxes. Similarly, the Trustees for Medicare say that “Without corrective legislation, therefore, the assets of the [Medicare Hospital Insurance] trust fund would be exhausted within the next 7 to 19 years.” The Path to Prosperity protects these programs for current and near retirees and saves them so benefits will be available for future retirees when the need them.

Myth:The budget turns Medicare into a voucher system.

Reality:This budget does not turn Medicare into a voucher system. First of all, the budget proposes no changes for Medicare recipients age 55 and older.

But if no changes are made to Medicare for future generations, the Medicare trustees say that “Without corrective legislation, therefore, the assets of the [Medicare Hospital Insurance] trust fund would be exhausted within the next 7 to 19 years.” To preserve Medicare for future generations, this budget proposed providing a Medicare payment and a list of Medicare-approved coverage options from which recipients can choose a plan that best suits their needs. These future Medicare beneficiaries will be provided the same kind of plan members of Congress and federal workers now enjoy.

Myth:The budget proposes to balance the budget with Medicaid cuts.

Reality:This budget does not cut Medicaid. In fact, it spends more on Medicaid each year than it does the previous year, but does so in a fiscally responsible manner that will lower the cost curve and ensure the long-term sustainability of the programs. Only Washington politicians would call that a cut. 

Medicaid is going broke, and this program is causing states governments to go broke, as well. The Path to Prosperity ends a one-size-fits-all Washington approach to providing health care to the poor. It converts the federal share of Medicaid spending into an allotment that gives states the flexibility to tailor their Medicaid programs to the specific needs of their residents. This budget also provides common sense solutions to poverty, helping create an environment for job creation so fewer people will be forced to rely on this safety net program.