Cut, Cap, Balance bill would severely cut Social Security, Medicare, Medicaid
July 21 - The "Cut, Cap, and Balance" bill passed by the U.S. House of Representatives July 19 would have devastating consequences for Social Security, Medicare, and Medicaid.
Supporters of the bill claim it protects Medicare and Social Security from cuts. But according to the Montana Center on Budget, those programs are only protected through 2012 -- and even that isn't fail-safe.
The bill is certain to have devastating consequences for those programs in the following years. You simply can't make the cuts required in the bill without slashing Medicare and Social Security.
Bob Greenstein of the national Center on Budget and Policy Priorities says this about the Cut, Cap, and Balance bill:
"The legislation would inexorably subject Social Security and Medicare to deep reductions. The measure does not cut Social Security or Medicare in 2012 … It is inconceivable, however, that policymakers would meet the bill’s severe annual spending caps through automatic across-the-board cuts year after year; ....
“Reaching and maintaining a balanced budget in the decade ahead while barring any tax increases would necessitate deep cuts in Social Security, Medicare, and Medicaid. After all, by 2021, total expenditures for these three programs will be nearly 45 percent greater than expenditures for all other programs (except interest payments) combined.
“Big cuts in these programs would be inevitable."
You can find Greenstein’s entire statement here.
Montana’s U.S. Rep. Dennis Rehberg voted in favor of the bill, which now goes to the Senate. President Obama has promised to veto it. Read news story about Rehberg's vote.