Taxes, Cost Controls, and Medicare

Let our journalists help you make sense of the noise: Subscribe to the Mother Jones Daily newsletter and get a recap of news that matters.

Speaking of fiscal reality, Austin Frakt reminds us that the federal budget, including Medicare, is actually in pretty good shape if we follow current law. Here’s the CBO’s projection of the primary budget (i.e., excluding interest payments):

Are Democrats willing to raise taxes in order to fund Medicare? Austin: “I do recall quite a vociferous debate over just this issue. Did Americans fail to notice that the health reform law spends a lot of money and includes a lot of tax increases? If so, that’s not just a Democratic messaging problem, but a Republican one too, and a general media failure. What more would it take to communicate this?”

Now, this CBO projection is one that assumes we follow current law. That is, we let the Bush tax cuts expire, we stop passing the doc fix, estate taxes revert to their 2009 levels, and we actually allow both the cost control mechanisms and tax increases of PPACA to take effect. As it happens, the estate tax has already been changed to rates slightly below the 2009 levels, but that has a pretty minor effect on things. The only one of these items that’s both significant and hard to imagine staying in place is the end of the doc fix. This means the budget isn’t quite as balanced as this chart suggests.

Still, even if we modify physician payments, we’re in decent shape as long as we have the discipline to let current law take its course, including both its tax increases and its cost controls. Toss in a compromise Social Security fix and we’d be in better long-term shape yet. So what’s wrong with this picture?

More detail here from Ezra Klein in word form rather than chart form.

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate