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Talking Points MemoThe House GOP has hit upon a way to undercut President Obama’s attacks on them and advance conservative policy goals all at once. This week, they’ll pass legislation that includes perhaps the least stimulative measure in President Obama’s jobs bill and pay for it with perhaps the most regressive measure in a recent package of deficit reducing proposals he submitted to the joint deficit super committee.
It’s a case study in the perils of offering concessions to your opponents before negotiations have begun. And it will force Democrats in both chambers, but particularly in the Senate, to decide whether to pass a proposal comprised of measures Obama’s backed in the past, even though they’ve been cherry picked to essentially constitute a Republican piece of legislation. If Senate Dems block the measure, Republicans will accuse them of wanting to pick political fights instead of passing Obama jobs legislation. If Dems pass the measure, and Obama signs it, the GOP can cite it as evidence that they’re not simply standing in the way of action on the economy.
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Here’s how it works: The government uses a measure known as Modified Adjusted Gross Income to determine Medicaid eligibility. Currently, though, it only incorporates the taxable portion of Social Security income in that calculation. Under this proposal, it would factor in all Social Security benefits. That means some seniors who currently qualify for Medicaid would no longer be eligible. Doing this would save about $14.6 billion over 10 years — more than the cost of repealing the 3 percent withholding compliance measure.
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.
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http://tpmdc.talkingpointsmemo.com/2011/10/house-gop-undercuts-obama-jobs-attack-on-congressional-gop.php?ref=fpa