House Fails to Pass GOP’s Balanced Budget Amendment

Published in Woonsocket Call on April 15, 2018

Following the recent passage of the $ 1.3 trillion omnibus government spending bill and the massive GOP tax cut bill that added more than a $1 trillion to the nation’s despite economic growth, and with midterm elections looming, the House GOP leadership quickly acted to tackle the spiraling nation’s deficit by bringing H.J. Res. 2, a balanced budget amendment (BBA), to the floor for a vote. Simply put, the amendment requires that total annual outlays not exceed total annual receipts. It also requires a true majority of each chamber to pass tax increases and a three-fifths majority to raise the debt limit.

House Judiciary Chairman Bob Goodlatte (R-Va.), introduced H.J. Res. 2, which he notes is nearly identical to text in legislation that passed the House in 1995, but failed in the Senate by one vote. This would be the Virginia Congressman’s last chance to push for passage of a BBA because he is not seeking re-election at the end of this term.

Last October. House Speake Paul Ryan (R-WI) agreed to vote on Goodlatte’s BBA, in exchange for conservative votes from the Republican Study Committee, chaired by Mark Walker (R-NC), on a procedural budget measure needed for Republicans to move forward on tax reform.

BBA Gets Thumbs Down by House Lawmakers

As expect, the House GOP’s BBA was defeated by a vote of 233 to 184, falling far short (by 57 lawmakers) of the two-thirds vote required for passage of an amendment under the Constitution. Six Republicans voted against it while only seven Democrats voted for it. But, the GOP’s BBA had little chance of becoming law because the required support of two-thirds in the Senate and Democratic Senators unified in their opposition, and finally the requirement that 38 states ratify the constitutional amendment.

“Our extraordinary fiscal crisis demands an extraordinary solution. We must rise above partisanship and join together to send a balanced budget amendment to the states for ratification.

I urge all my colleagues to join me in supporting this amendment and in freeing our children and grandchildren from the burden of a crippling debt they had no hand in creating, so they can be free to chart their own futures for themselves and for their own posterity,” Goodlatte said during the House floor on Thursday evening.

During the four-hour debate, House Republican Conference Chair Cathy McMorris Rodgers (R-WA), asked Congress to balance its budget like typical families do. She said,“Families across the country sit down at their kitchen tables every month and make tough decisions to balance their budget so that they can make ends meet. Just like American families, the federal government should spend within its means. A Balanced Budget Amendment, which requires a two-third majority in both chambers of Congress to pass, is a needed and important mechanism to restore fiscal discipline. “

On the House Floor, Democratic Leader Nancy Pelosi called the BBA “a brazen assault on seniors, children and working families – the American people we were elected to protect.”

“Make no mistake, this GOP con job has nothing to do with fiscal responsibility. It is not balanced in terms of money because of their GOP Tax Scam that’s placed us in a bad spot fiscally and it’s not balanced in terms of values,” says Pelosi, noting that GOP fiscal responsibility comes down to “ransacking Medicare, Medicaid and Social Security and breaking our nation’s sacred promise of dignity and security for seniors and families.”

Before the House vote on the BBA, Darrell M. West, vice president and director of Governance Studies at the Washington, D.C.-based the Brookings Institution, stated “I would be surprised if the bill made it through Congress.” He added, “It’s hypocritical for Republicans to support a balanced budget amendment after they cut taxes by $1.5 trillion and added significantly to the federal deficit. Voters will see through that and understand the vote is about scoring political points and not making good public policy.”

House Lawmakers Bombarded with Opposition Letters

Days before the House vote the National Committee to Preserve Social Security and Medicare (NCPSSM), AARP expressed opposition to the passage of the BBA by sending a letter to the Hill, urging House lawmakers to reject the GOP’s constitutional amendment. Hundreds of aging, health care, educational, unions, and business groups were cited in the April 12, 2018 issue of the The Congressional Record as opposing the amendment.

Max Richtman, NCPSSM’s President and CEO, wrote House lawmakers warning that a BBA would unravel the nation’s social safety net by making gigantic entitlement cuts by blocking benefit payments from the Social Security and Medicare Part A trust funds because “all federal expenditures, including these earned benefits, would have to be covered by revenue collected in the same year. “

A BBA would also force Congress to make huge spending cuts to Medicare Parts B, C and D, Medicaid, and many other social safety net programs for seniors, to rein in the nation’s deficit and pushing lawmakers to make “massive new tax cuts.,” says Richtman.

“While the balanced budget amendment did not dictate any particular approach to deficit reduction, by altering established Congressional voting procedures it would have increased the likelihood that the fiscal policies adopted in coming decades would favor the well-off at the expense of middle- and low-income Americans. The amendment would have required a two-thirds vote of the full membership of the House and Senate to raise taxes. Spending cuts, by contrast, would continue to require only a majority of those present and voting and could be passed on a voice vote,” observed Richtman.

Finally, Richtman noted that the risk of a federal government default would increase because a BBA requires a three-fifths vote of both the House and the Senate to raise the national debt limit, rather than the current simple majority.

AARP Executive Vice President Nancy LeaMond also expressed opposition to the BBA in a letter to House lawmakers charging that the amendment would impact the solvency of Social Security and Medicare, “subjecting both programs to potentially deep cuts without regard to the impact on the health and financial security of individuals.” Programs that provide meals or heating assistance to low income seniors would also see available resources diminish, she predicted, she said.

The lack of a dependable Social Security and Medicare benefit [if a BBA was passed] would be devastating for millions of Americans. Social Security is currently the principal source of income for half of older American households receiving benefits, and roughly one in five households depend on Social Security benefits for nearly all (90 percent or more) of their income. Over 50 million Americans depend on Medicare, half of whom have incomes of less than $24,150. Even small fluctuations in premiums and cost sharing would have a significant impact on the personal finances of older and disabled Americans,” said LeaMond.

Midterm Elections Just Six Months Away

The nonpartisan Congressional Budget Office (CBO) predicted early this week that the annual government’s deficit is projected to be $ 1 trillion next year. And the nation’s $21 trillion debt would skyrocket to 33 trillion by 20028. With the midterm elections just six months away, combined with the CBO’s recently released economic analysis, the Republican party’s image as being the fiscally responsible political party is now shattered.

Even controlling both chambers of Congress and with President Donald Trump in the White House, GOP lawmakers must now look for political issues that may resonate with their constituents. Further attempts to dismantle Socials Security and Medicare may not be the way to go.

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Republicans Begin a Legislative Assault on Social Security

Published in Woonsocket Call on December 11, 2016

With the dust just settling after last month’s heated presidential 2016 election, the GOP took over the White House and maintained control of both chambers of Congress. With almost 40 days left before Obama leaves office, an emboldened GOP calls for the repeal of Obmacare and the privatization of Medicare. That said, fixing Social Security is now on their short list of domestic policies to address.

Last Thursday, the long-anticipated political skirmish over how to reform and ensure the fiscal solvency of Social Security began with Ways and Means Social Security Subcommittee Chairman Sam Johnson (TX-03) introducing legislation to drastically overhaul the nation’s most popular social insurance program.

In the Eyes of the Beholder

“For years I’ve talked about the need to fix Social Security so that our children and grandchildren can count on it to be there for them just like it’s there for today’s seniors and individuals with disabilities,” Johnson said in his statement introducing H.R. 6439, the Social Security Reform Act of 2016. “My commonsense plan is the start of a fact-based conversation about how we do just that. I urge my colleagues to also put pen to paper and offer their ideas about how they would save Social Security for generations to come,” he said.

Johnson’s legislative proposal seeks to overhaul the nation’s Social Security program by increasing the retirement age from 67 to 69, this change impacting people born in 1968 who will begin retiring in the mid-2030s. The basic Social Security benefit formula would also become less generous for beneficiaries… except for the poorest beneficiaries. The annual cost-of-living adjustment (COLA), using a Chained-Weighted CPI, would put the brakes on generous COLA increases. COLA’s would be cut for those earning over $85,000.

Circling the Wagons to Protect Social Security

Democratic Leader Nancy Pelosi came out swing in a statement after Johnson’s threw his bill into the legislative hopper, charging that it would “inflict deep cuts in Social Security benefits.”

“Apparently nothing upsets House Republicans like the idea of hard-working people getting to enjoy a secure and dignified retirement. While Speaker Ryan sharpens his knives for Medicare, Chairman Johnson’s bill is an alarming sign that Republicans are greedily eying devastating cuts to Americans’ Social Security benefits as well,” Pelosi said.

She warned, “Although current retirees and those close to retirement will receive their Social Security benefits, changes are looming with a Trump administration and a Republican-controlled Congress. For younger generations all benefit cut options are expected to be put on the table.”

Rhode Island Congressman David Cicilline calls Johnson’s legislative proposal a “travesty,” warning that it would “destroy Social Security as we know it by slashing the critical benefits that millions of seniors rely on to live their retirement years with dignity.”

According to Cicilline, the last time Republicans tried to eliminate Social Security during the Administration of President George W. Bush, the American people were outraged and rejected it.”

Max Richtman, President and CEO of the Washington-based National Committee to Preserve Social Security and Medicare views Johnson’s Social Security fix legislation introduced as the 114th Congress is wrapping up, “the first salvo in the ‘War on the Working Class.’”

Rep. Johnson will no doubt re-introduce his bill in the next Congress, he predicts.

According to Richtman, Johnson’s legislative proposal cuts Social Security benefits by one third while raising the retirement age from 67 to 69. It seeks to control costs by changing the benefit-computation formula in a way that cuts benefit amounts. Finally, it cuts COLAs, too.

Richtman charges that this Social Security reform proposal would “irreparably harm the nearly 60 million Americans who currently depend on Social Security as well as future beneficiaries.”

“President-elect Trump will have a veto pen. Now is the time for Mr. Trump to re-affirm his campaign promise “not to touch” Social Security and Medicare. So far, he has been uncharacteristically silent on this vital issue. I promise that we will hold him accountable,” says Richtman.

“No one voted for massive cuts to Social Security, nor to end the program as we know it,” says Nancy Altman, founding co-director of Social Security Works, in a response to Johnson’s legislative proposal to radically change Social Security. “The Johnson plan would gradually but inexorably turn Social Security from a program that replaces wages to one that produces essentially one flat benefit, independent of how much a worker contributed,” she says.

“With Republicans in full control of the federal government, these cuts have a real chance of being passed into law. Trump needs to immediately reassure the American people that he will keep his campaign promise and veto this awful bill. He should tweet that immediately,” adds Altman.

The presidential debates and the platforms of the GOP and Democratic party reveal a stark difference as how to each party will fix the ailing Social Security program. Now is not the time to put Social Security on the chopping block. Congress must come together to hammer out bipartisan approaches to ensure the fiscal solvency for the next 100 years. .