WASHINGTON, Sept. 2 /PRNewswire/ -- Citizens Against Government Waste
(CAGW) today released its fourth in a series of Reality Checks to slice
through the rhetoric of the Democratic and Republican Party Conventions.
Myth #1: Medicare has been strengthened. From the Republican Platform:
"In 2003, the Congress passed and President Bush signed historic legislation
that strengthens and adds a prescription drug benefit to Medicare."
Reality Check: Far from strengthening Medicare, the prescription drug
benefit accelerates the program's drive toward bankruptcy while increasing
overall healthcare costs. Members of Congress thought they were approving a
program that would cost $400 billion over 10 years, but the actual estimate
was $534 billion, a 33 percent increase that was withheld from representatives
and senators as they voted on the new benefit. The second decade of the
program could cost between $1.7 and $2 trillion, and overall will add $8
trillion to the nation's $42 billion in unfunded entitlement liabilities. In
its current form, Medicare will consume 24 percent of federal income taxes by
2019, and 51 percent by 2042. Some experts are predicting Medicare Part D
will not be ready when the temporary discount card expires next year. Instead
of sticking to a Medicare reform package that resembles the Federal Employee
Health Care Benefit Plan, Congress passed a massive program that is confusing
seniors and saddling future generations with a massive debt.
Myth #2: Republicans are free traders. From the Republican Platform:
"Free trade must be fair trade that advances America's economic goals and
protects American jobs ... we must act to negotiate new trade agreements and
enforce existing trade commitments ... we must make the interests of American
workers and farmers paramount ... we reject moves toward economic isolationism
... the revival of (World Trade Organization) negotiations opens the door to
lower tariffs on consumer and industrial goods, reductions in tariffs and
trade-distorting export subsidies on agricultural products, and market access
and lower regulatory barriers for services."
Reality Check: Creeping protectionism is casting doubt on the nation's
commitment to fair trade. The 2002 Farm Security Act increased agricultural
subsidies by 70 percent and completely reversed course from the free market
reforms begun in the 1996 Farm Bill. Peanut and sugar subsidies remain
detrimental to agricultural export opportunities, and dairy programs continue
to be costly to taxpayers and consumers. Instead of simply eliminating a $5
billion tax break that the WTO found to be illegal, Congress passed $78
billion in targeted tax breaks that will not solve the problem. Congress has
not repealed the Continued Dumping and Subsidy Offset Act, known as the Byrd
amendment, which distributes antidumping duties collected by U.S. Customs to
the companies that made the original complaints. Although President Bush
repealed the tariffs on imported steel, they were imposed at a cost of $2
billion to consumers and taxpayers. Finally, restrictions on the importation
of Mexican avocados persist despite assurances from the Department of
Agriculture that the Mexican avocado industry now has adequate safeguards.
Citizens Against Government Waste is a nonpartisan, nonprofit organization
dedicated to eliminating waste, fraud, mismanagement and abuse in government.
SOURCE Citizens Against Government Waste
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Related links:
http://www.cagw.org
CONTACT:
Mark Carpenter or Tom Finnigan of Citizens
Against Government Waste, +1-202-467-5300
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