Thursday, February 02, 2006

Cutting funds for those who can afford it the least

I'm all for the Federal Government being fiscally responsible. I also can't argue that some of the entitlement programs could be run more efficiently and with alot less waste of tax dollars. While I haven't had a chance to read the whole bill to see what else was cut, when reading the above linked Washington Post article it appears at first glance those who can least afford to face cuts are going to shoulder the majority of these cuts.

The House yesterday narrowly approved a contentious budget-cutting package that would save nearly $40 billion over five years by imposing substantial changes on programs including Medicaid, welfare, child support and student lending.

Cutting aid to help states track down deadbeat parents to me doesn't seem to be a logical step, especially if other cuts to Welfare are being made. That places an undo burden on single parents. Giving the elderly the much touted prescription drug plan then raising co-payments and premiums appears to be an act of giving then taking away.

Congressional Budget Office documents estimated that Medicaid changes would impose new costs on 13 million poor recipients and end insurance coverage for 65,000 Medicaid enrollees, that cuts to federal child-support enforcement funds would shift costs to the states and eliminate billions of dollars in child-support payments,

Since this doesn't often happen, I do have to point out that I agree with the statement of my Senator from Ohio:

"I do not know how anyone can say with a straight face that when we voted to cut spending in December to help achieve deficit reductions, we can now turn around a short while later to provide tax cuts that exceed or cancel out the reduction in spending," Sen. George V. Voinovich (R-Ohio) said yesterday, as the Senate took up a procedural motion that would allow tax-cut negotiations to begin. "We cannot afford these tax cuts."

The poor are not the only ones affected by this though, elderly who still have financial assetts will be affected by this as well:

The bill allows state governments to impose new co-payments and deductibles on Medicaid recipients, a power sought by governors of both political parties to try to slow the exploding costs of the health program. It makes it far more difficult for middle- and upper-income seniors to attain Medicaid coverage for nursing care by transferring assets to family members, then pleading poverty.

I don't think the additional work requirements for TANF will change much in Ohio, which is why I didn't focus on that aspect of it. The child support aspect will hurt Ohio single parents much more deeply from my understanding of this. As a person who has already had way too many battles with Ohio and Child Support, it's already hard enough to get anything done under the current system under their present level of funding.

There is one group at least who should be happy...

Changes made to the Senate-passed budget package are estimated to save private Medicare insurers $22 billion over 10 years......

11 comments:

historymike said...

While they announced today that another $70 billion is needed in Iraq and Afghanistan.

This administration will add trillions to the national debt, and yet Bush had the audacity to call the Dems the party of "tax-and-spend."

Seems to me the last Democratic president not only balanced the budget but churned off sevreal years' worth of surpluses.

T. F. Stern said...

I would never make it on the elected to office game. I'd cut out all spending except for national defense or infrastructure improvement. The up side would be that instead of welfare, medicare and entitlement programs there would be a boat load of new short term government jobs to build that wall along our borders, new bridges, rail systems in major metropolitan areas, water delivery projects and such. The down side would be, hey there is no down side to my way of thinking. Lol

Unknown said...

If your idea would enable states to control their own entitlement programs rather than having to fund programs that the Federal Government determines?

I'd consider it TF.

:-)

Cyberseaer said...

This reminds me of The History of the World Part I by Mel Brooks with the scene of the Roman Senate answering the question, "Do we start programs that will help the poor or keep the money for ourselves?"

"F--- the poor!"

Scott G said...

One of these days my blow up economics theory will catch on and it will be the best thing to happen to America since Britney Spears got pregnant and quit singing

Unknown said...

Wow...I didn't think anything could top that one

:-)

Charles N. Steele said...

Reducing welfare and similar transfer programs makes sense -- but the sensible way to do is isn't by simply cutting off those dependent on them, but emphasizing increasing their abilities & opportunities to take care of themselves.

Meanwhile, a fast and relatively harmless way to cut spending would be to eliminate ASAP welfare for those fully capable of taking care of themselves, e.g. the U.S. Sugar Program and similar welfare programs for the wealthy.

Unknown said...

That I would also agree with Charles, fully realizing that not all entitlement programs should exist or are managed in a fiscally sound manner some do or should be cut/eliminated. However, if Congress was really serious about fiscal responsibility there are alot of other programs that should go ahead of the line and in line with them.

Anonymous said...

They are raising the interest rates for Stafford loans... so I'll be paying off even more after I graduate.

Supposedly though, when I graduate and I'm a wealthy engineer running my own firm, I'll use the tax cuts I get to provide more jobs so my money will "trickle down" to the peons, er, lower income families.

We should have invested in Yahoo, Mom!

Unknown said...

Yeah, I know em, I really failed you guys when it came to my stock portfolio.

:-)

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