Rep. Ryan Doubles Down On His Privatization Scheme

In late January, Rep. Paul Ryan (R-WI), the ranking member on the House Budget Committee, released a "Roadmap for America's Future" budget proposal that virtually dismantles Social Security and Medicare.

Sensing the political difficulties that would come with essentially eliminating two of the government's most successful (and popular) programs, House GOP leaders acted quickly to distance themselves from Ryan's proposal. 

House Minority Leader John Boehner said:

Paul Ryan, who's the ranking member on our budget committee, has done an awful lot of work in putting together his roadmap... But it's his. And I know the Democrats are trying to say that it's the Republican leadership. But they know that's not the case

Yet rather than take the leadership's not-so-subtle hint, Ryan is doubling down on his draconian approach to America's fiscal challenges.  In a brand new Newsweek article, Ryan reiterates the Roadmap's "virtues."

Almost Honest

While Rep. Ryan's proposals are nothing new (they've already been proposed by President Bush and Sen. McCain, just to name a few) he is going about it much differently than his GOP predecessors.  Rather than paint a pretty picture and hide all the harsh realities of his plan, Ryan admits it would require some sacrifice from America's seniors.  Exactly how much sacrifice, he's still trying to hide.

Rep. Ryan admits he will dismantle the employer-based health care system:

RYAN: You, not your government or your boss, should own your health plan. The Roadmap replaces a tax break that benefits only those with job-based health insurance with tax credits that benefit every American. It addresses the key drivers of rising health-care costs, securing universal access to quality, affordable health coverage.

Yet Ryan doesn't mention that his plan taxes employer-provided health insurance and only provides $5,700 tax credits per family.  In contrast, the average family's health care plan will cost $24,291 by 2016.

Privatize Social Security and Medicare:

RYAN: One frequent charge against these reforms is, however, correct: the Roadmap does shift power to individuals at the expense of government control. It rejects the merits and sustainability of a cradle-to-grave welfare state, which drains individuals of their self-reliance. The plan unapologetically applies our nation's founding principles-individual liberty, limited government, and free enterprise-to the challenges of today.

While this paragraph doesn't flat-out say "I will privatize Social Security and Medicare," that's exactly what it means. Ryan displays his contempt for any effort by the government to ensure its citizens are able to maintain their standard of living once they're unable to work and provide for themselves.

Ryan's Newsweek article also fails to mention that his Social Security scheme would result in cuts to seniors' retirement benefits.  As the Congressional Budget Office noted, under Ryan's "Roadmap": "Traditional retirement benefits would be reduced below those scheduled under current law for many workers who are age 55 or younger in 2011."

Implement "means testing" for Medicare recipients:

RYAN: It also makes sense to tie benefits to income so that those with fewer resources receive more support.

Ryan doesn't mention, however, that a large component of his plan is raising Medicare premiums for seniors.  The Congressional Budget Office writes: "People who are age 65 or older in 2020 and other existing enrollees at that time would continue to be covered by the current program, although some higher-income enrollees would pay higher premiums."

Cut Social Security and Medicare:

RYAN: Critics say that any attempt to cut entitlements is tantamount to political suicide. Nonsense.

Ryan grazes the issue here, but the Congressional Budget Office provides important (and devastating) details: "Traditional retirement benefits would be reduced below those scheduled under current law for many workers who are age 55 or younger in 2011. People with lower earnings would experience smaller reductions in benefits, and those with higher earnings would experience larger reductions."

Raise the eligibility age:

RYAN: It makes sense to gradually increase the eligibility ages for Social Security and Medicare

RYAN: For both Social Security and Medicare, eligibility ages will gradually increase.

Whether Rep. Ryan is 100% forthcoming or not, the truth about his draconian proposals will eventually come out.  Luckily, American seniors can be comforted by the fact that, like the plan's previous incarnations, Ryan's "Roadmap" probably won't ever come to a vote in Congress.

Even Ryan concedes that, "there is never a good time politically to put something like this out there."

On that point, he's correct.