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Friday Alert 10/28/05
Alliance for Retired Americans
888 16th Street, N.W. - Washington DC, 20006 - (202)
974-8222 - www.retiredamericans.org
Bush Calls for Deeper Budget Cuts, More Tax Cuts and
Private Accounts
President Bush bolstered GOP calls to slash federal spending, saying he
encouraged "Congress to push the envelope when it comes to cutting spending,"
while at the same time pressing lawmakers to approve $70 billion in tax cuts.
The President also attempted to renew his plans to privatize Social Security
indicating that he would continue his campaign to sell his proposals to the
American people.
This week, the Senate Budget Committee approved $39 billion in cuts ranging from
Medicare to student loans. Sen. Charles Grassley (R-IA), who chairs the Senate
Finance Committee that sliced $10 billion from Medicaid and Medicare, said the
Medicare cuts would affect the health care industry and not beneficiaries,
Reuters reported. But Sen. Max Baucus (D-MT) expressed concern that the Senate's
package of cuts would not survive reconciliation with the House. House
Republicans are working towards carving $50 billion from the budget targeting
programs such as health care and food stamps. Democrats have unanimously opposed
spending cuts targeted towards the poor particularly because Republicans also
plan to push through tax cuts that disproportionately benefit the richest
Americans. It remains to be seen whether or not the Republican leadership can
pass its Draconian cuts. Last week, House Majority Leader Roy Blunt (R-MO) was
forced to cancel a budget vote when it became clear he did not have the votes to
win.
Alliance Joins the Emergency Campaign for America's
Priorities (ECAP)
The Alliance has joined the Emergency Campaign for America's
Priorities (ECAP). ECAP is a short-term, national campaign organized to fight
plans to cut programs vital to seniors in order to finance additional tax cuts
for millionaires and corporations. Created by groups including AFSCME, the
AFL-CIO, and the Leadership Conference on Civil Rights, ECAP encompasses the
Fair Taxes For All coalition, of which the Alliance is also a member. ECAP is a
successor organization to Americans United to Protect Social Security, which was
a leader in the so-far successful campaign against Social Security
privatization.
Over the next few critical weeks, the Republican congressional leadership plans
to cut critical programs, such as Medicaid and food stamps. Meanwhile, many in
Congress are pushing for another $70 billion in tax breaks that overwhelmingly
benefit the wealthiest Americans. The Alliance's participation in ECAP will
bring even more resources and coordination to the fight against unfair and
irresponsible tax and budget policies that reflect the wrong priorities. For
more information on the Emergency Campaign for America's Priorities, including
activities, events and how you can get involved, visit
www.actnow.org .
Poll Suggests Bleak Outlook for
Incumbents
If mid-term elections were held this November,
Congressional incumbents would be scrambling to keep their jobs. Americans have
not been this frustrated with Congress since Republicans took control in 1994,
according to the latest USA Today/CNN/Gallup poll. President Bush, whose
approval ratings are the lowest of his presidency, does not provide a political
advantage to GOP members. Of registered voters, 55% said they would vote for a
Congressional candidate who opposed President Bush. Social Security will rank
high on voters' priorities in the 2006 elections, with 75% saying it was an
important issue." By a margin of 56% versus 33%, those polled said they favored
Democrats to do a better job on dealing with Social Security.
Medicare Aid Program Extended
Congress extended for two years Medicare's Qualifying Individual, which covers
Medicare Part B premiums for beneficiaries with annual incomes under $13,164
(individuals) and $17,568 (couples). The Medicare Part B premium will increase
from $78.20 monthly to $88.50 monthly in January 2006. The Bush administration
called on Congress to extend the program after it had expired on September 30.
The House and Senate reached an agreement last week and passed the legislation,
which applies retroactively.
Pension Premiums May Rise
As part of the budget process, a House committee on Wednesday approved a measure
to raise the premiums companies pay to insure employee pensions to $30 per
employee from $19. After an increase to $30 in 2006, the Pension Benefit
Guaranty Corp. could seek additional premium increases of up to 20 percent for
the next four years. The House plan would also charge companies that have
terminated their pensions plans after going bankrupt $3,750 for each participant
in the plan. The Senate, on the other hand, has stalled on its version that
would raise the premium to $46.75 per employee.
Drugs Sales to Soar with Medicare Rx
Benefit
Medicare's drug benefit will contribute to soaring drug sales in the United
States next year. The U.S. drug market now accounts for 43% of global
pharmaceutical sales and is expected to expand between 8% and 9% in 2006,
according to IMS Health. Americans will continue to be some of the largest
consumers of prescription drugs when compared to the global market. IMS Health
reported that five major European countries are expected to see their drug
market grow to $124 billion compared to the U.S. estimate of $280 billion. The
Christian Science Monitor reports that with the debut of the drug benefit in
January 2006, Medicare will account for 28% of drug sales in the U.S. The
Monitor also reports that Medicare's entry into the outpatient prescription drug
market as well as the sheer cost of the drug benefit-more than $700 billion over
10 years-will put a spotlight on drug efficacy and cost. The Agency for
Healthcare Research and Quality (AHRQ), a little known federal agency charged
with researching and evaluating drugs, has been empowered under the Medicare law
to publicize the effectiveness and cost-effectiveness of prescription drugs.
December 10: Workers' Rights Are Human
Rights
On International Human Rights Day, Dec. 10, working families across America will
defend the basic right to form unions and continue a long and lasting campaign
to deliver the message that when employers violate workers' rights they are
hurting the entire community. Most Americans object to employers blocking
workers' freedom to choose a union, but many don't realize that one in four
employers illegally fire workers for union activity. Raise your voice to defend
this basic human right! Find out how what you can do at the AFL-CIO website at
http://www.aflcio.org/joinaunion/voiceatwork/d10.cfm .
Become part of a progressive grassroots movement! Join the Alliance:
www.retiredamericans.org/join |
