GOP Balances Corporate Tax Break With Cut To Medicaid While Obama Tries To Stimulate Economy

Republicans in Congress are getting tired of hearing that they are blocking the country’s path to economic recovery, especially by refusing to pass President Barack Obama’s ambitious “American Jobs Act” bill.  So they have decided to get to work, passing the little bits that they do like — and asking Democrats to take some serious concessions in retaliation.

Via Talking Points Memo, House Republicans are proposing ending a three percent “holding fee” the government keeps when contracting out jobs to private companies.  The fee is kept to guarantee the private company pays all of the proper taxes on the job, a rampant issues with private contracts before the fee was implemented by President George W. Bush.  The GOP wants to end that practice and, to balance out the cost of the lost fee, it wants to restrict the income level for qualifying for Medicaid by making all Social Security benefits part of the financial consideration, rather than just the part that is taxable.

Or, as they put it, “In sum: make it easier for big contractors to cheat on their taxes, and covering the cost by limiting Medicaid eligibility for sick old people.”

However, Republicans aren’t the only ones picking and choosing these days.  Frustrated by Congress’s inability to pass anything, the President has begun combing through his own proposal, finding those pieces that he can simply sign into law himself, without approval from the legislative branch.

According to the New York Times, Obama’s “We Can’t Wait” push will work primarily to reduce debt loads that are overwhelming every day Americans, as an attempt to free up more income to go into spending and stimulate the economy, versus paying debt.  He has already made an effort for homeowners via the revamped HARP program he unveiled, and on Wednesday he is expected to address student loan debt.  The administration has vowed to release one new initiative a week through the end of 2011, although they would prefer for Congress to pass a bill instead.

“The only way we can truly attack our economic challenges is with bold, bipartisan action in Congress,” said Dan Pfeiffer, Mr. Obama’s communications director. “The president will continue to pressure Congressional Republicans to put country before party and pass the American Jobs Act, but he believes we cannot wait, so he will act where they won’t.”


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photo credit: Chuck Kennedy, White House Photostream


Patrick F.
Patrick f.4 years ago

Figures, isn't too hard to find the money trail...

Jane Barton
Jane Barton4 years ago

Cheney IS running the Republican party and he IS a billlionaire. Thanks for pointing that out.
He's in the elite club of evil thieves who are running our country.

Patrick F.
Patrick f.4 years ago

Same old story, the Democrats try to fix and the Republicans try to destroy. They obviously have an antisocial agenda to destroy America so a few can profit from the rebuilding and they did in Iraq. I guess Dick Cheney is still running the Republican party....

Jane Barton
Jane Barton4 years ago

There are millions of ignorant middle class Republican Christian and Catholic gay bashing bigots who want to cut spending on the poor. What these idiots don't realize is the POOR is actually THEMSELVES. The dumb ass middle class Republicans think the politicians are going to cut spending on the OTHER GUY. hahaha Rich Republicans are telling the American people the REAL problem is all these LAZY POOR people, let's cut their benefits!! That will balance the budget!! For those Republicans who are posting on here, if you aren't super rich and rubbing elbows with that 1% then you are probably down here with the rest of us and you are gonna get screwed even more than you are now by voting Republican.
The issue here is the lesser of two evils. Our political system is corrupt to the core. It's now about just having a president who will throw regular Americans a bone once in a while. The Republicans will NEVER do that.

Jeffrey W.
Jeffrey W.4 years ago

"But 100% of the Republican party represents the 1%.'

If that absurd statement were true, no Republican would ever get elected.

Cheryl Bresney
Cheryl Bresney4 years ago

Nancy says: Wow! what a surprise; the Republicans are willint to hurt the poor which is who Medicad takes of.

At the end of your life, when all insurance is depleted and all those long term health policies you had hoped will carry you through go bust, the only safety net left between your inoperable body and the streets is medicaid. The repugnants know this and to torture the poor is bad enough but to torture grandma and grandpa at the end of life is the number one reason they are contemptable and must be called out for their inhumanity. Life over corporate, people....

Glenn M.
Glenn Meyer4 years ago

Corporations have over-powered our government which now believes that out-sourcing and off-shoring of U.S. jobs is inevitable and necessary with expectations that the middle class should fall on their swords. It is the underlying cause of the financial collapse and borders on national security with the loss of our middle class tax base. Yet, this nation does nothing, not even demand it be restricted by whatever method. International businesses are doing the UN-AMERICAN activity of destroying U.S. salaries, U.S. businesses that hire in the U.S., and as an end result, destroying the U.S. marketplace while still demanding BUSINESS ENTITLEMENTS and protections for themselves.

Infrastructure spending and tax breaks will not replace enough jobs to keep up with the hemorrhaging loss of U.S. jobs from out-sourcing over seas. Neither party will do anything about it unless we begin grass roots efforts to protest out-sourcing and off-shoring of U.S. jobs. If nothing is done we will deserve what we get and it will get a lot worse before it gets better.

David C.
David Connally4 years ago

I've learned from past experience that Don I never knows what he's talking about but I was intrigued enough by his constant re[petition about the swarm of jobs bills passed by the House but stalled in the senate. Took me to Boehner's blog site.

Now I want you all to take a deep breath to prepare for the jobs opportunity passed up by the senate. They, I can hardly contain my excitement, they passed a resolution dispproving of the FCC ruling on net neutrality.

Can you believe Reid didn't jump on that? Probably put a million? a thousand? ten? one? 0? people back to work.

The Republican strategy is to call any bill they pass a jobs bill, anything that Obama wants is a job killer. The amazing thing is that people hear the constant drumbeat of lies and eventually believe it. The Goebbels strategy. Hitler's propaganda minister. "Repeat a lie often enough and people will begin to believe it"

David C.
David Connally4 years ago

@Don I

You're probably right that the 99 don't represent 99% of the American people. But 100% of the Republican party represents the 1%. Wonder why 1% of the population needs 47 senators and couple of hundred representatives to represent them.

Debbie Wasko
Past Member 4 years ago

FOOD FOR THOUGHT (consider all the pros and cons):

Google: Thomas Sowell - Obama's Vision, - Obama's Health Care Reform, - What Are They Buying.

Then Google: Thomas Sowell - Barack Obama (pick your subject of interest among those listed and most current).