DSCC: New DSCC Ad: North Carolina Can’t Trust Thom Tillis to Protect Medicare

WASHINGTON, Sept. 26 -- The Democratic Senatorial Campaign Committee issued the following news release:

The Democratic Senatorial Campaign Committee is releasing a new ad (https://www.youtube.com/watch?v=dAswpb4WeFU&feature=youtu.be) today in North Carolina that highlights why North Carolina can't trust Speaker Thom Tillis to protect Medicare. Speaker Tillis would give tax breaks to millionaires and corporations that ship American jobs overseas while ending Medicare's guaranteed coverage for North Carolina seniors. The ad features Marie Grauerholz slamming Speaker Tillis, "Thom Tillis may be Speaker of the House, but he sure doesn't speak for me."

To watch "Marie," click here: https://www.youtube.com/watch?v=dAswpb4WeFU&feature=youtu.be

"Speaker Thom Tillis' plan to end the Medicare guarantee proves just how out of touch he is with North Carolina," said Justin Barasky, Communications Director at the Democratic Senatorial Campaign Committee. "Speaker Tillis would give tax breaks for millionaires and corporations that ship jobs overseas while cutting Medicare. North Carolinians deserve a Senator that fights to protect Medicare, not Speaker Tillis, who's destructive agenda is completely wrong for North Carolina."

BACKUP:

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"Marie" DOCUMENTATION

AUDIO: I'm not a millionaire and I don't own a private jet. I depend on Medicare.

TEXT: Marie Grauerholz

AUDIO: I think the fact that Thom Tillis wants to cut Medicare just shows that he doesn't know what people in North Carolina are like and what the average person needs.

TILLIS SUPPORTED BUDGETS THAT WOULD SLASH MEDICARE AND REPLACE IT WITH UNTESTED VOUCHERS

2014: Tillis Praised The FY 2015 Ryan Budget, Saying "I Hope That The President Follows What the House Has Done." In an April 2014 interview Tillis was asked how he would cut the deficit. TILLIS: "Well I hope that the President follows what the House has done with passing a budget recently that eliminates the debt, the deficit, over 10 years. That's a good starting point. We've got to get our hands around spending. We've got to recognize that we're going to have to pay down an 18 - approaching 18 trillion dollar deficit. And I think that there are things in the House budget that the President should look at. Lead this nation and try to get a budget passed for the first time in a long time." [Raleigh News & Observer, Tillis video interview, 4/18/14; Vote #177, 4/10/14]

* AARP: Republican Budget Would Remove The Medicare Guarantee. According to an AARP press release, "Chairman Ryan's proposed budget fails to address the high costs of health care and instead shifts costs onto seniors and future retirees. Repealing the benefits of the Affordable Care Act ignores the progress we've made to improve access to health care and protect against discrimination based on age, gender or medical history. Removing the Medicare guarantee of affordable health coverage for older Americans by implementing a premium support system and asking seniors and future retirees to pay more is not the right direction." [AARP Press Release, 4/1/14]

* Ryan Budget Would Force Medicare Into Voucher Program. "House Republicans will revive Rep. Paul Ryan's lightning-rod proposals to slash the federal safety net, beef up military spending and reduce taxes for the wealthy in a budget unveiled Tuesday -- an election-year calling card that Democrats are poised to use against the GOP. The blueprint from Ryan, the party's former vice presidential nominee, is expected to be met with stiff opposition not only from Democrats, but also from hard-line Republicans who want deeper austerity cuts to more quickly balance the budget. Like President Obama's own budget earlier this year, Ryan's proposal for the 2015 fiscal year is largely a philosophical statement of principles. Neither document has much practical use this year because spending levels have already been agreed to by Congress. But in a campaign season, Ryan's 'Path to Prosperity' budget is expected to provide voters with a clear choice of party priorities. House Republicans will return to the core ideas from Ryan, the Budget Committee chairman, that have come to define the party's approach: Cut federal spending on Medicare, Medicaid and other programs that make up the federal safety net, while reducing top individual and corporate tax rates to 25%, which Republicans argue will spur economic growth. Ryan retained his idea for turning the Medicare health system into a voucher-like program for future seniors, providing a fixed amount of cash that can be applied toward the purchase of private health insurance. The voucher may also be used to enroll in traditional Medicare, but it may not fully cover the cost." [Los Angeles Times, 4/1/14]

Tillis Said The Ryan Plan Was "Absolutely" Comparable To What He Would Push In The North Carolina Legislature. "As Congressman Paul Ryan pitched his budget plan Tuesday in Raleigh, he sat between two important Republicans listening intently: Senate leader Phil Berger and House Speaker Thom Tillis.

Ryan's budget calls for serious reductions in federal spending, privatizing Medicare plans and eliminating the six current tax rates to two, 10 percent and 25 percent. Tillis suggested elements of the plan are a model for North Carolina, particularly eliminating taxes and loopholes. Asked whether Ryan's plan is comparable to what the legislature is doing at the state level, Tillis said 'absolutely.' 'If you take a look at our strategy for broadening the (tax) base and lowering the (tax) rate ... and eliminating loops holes, it's exactly the same framework,' he said. [ ] Tillis said he expects the North Carolina's version of the Ryan to be in place by July 2013." [Raleigh News & Observer, Under the Dome, 6/5/12]

* Raleigh News & Observer's Under The Dome: "N.C. Republicans See Paul Ryan's Controversial Budget As A Model." [Raleigh News & Observer, Under the Dome, 6/5/12]

Tillis "Eagerly Embraced" The 2012 Ryan Budget. In May 2014, CNN reported: "In 2012, Tillis eagerly embraced that year's version of the House Republican budget drafted by Wisconsin Rep. Paul Ryan. Questioned about this year's budget plan -- specifically if he supports Medicare vouchers -- Tillis punted. 'I haven't studied it to the position where I can really give you a well-informed response,' he said." [CNN, 5/5/14]

Tillis Thought Romney/Ryan Came Across As The Answer To The Problems That A Lot Of Americans Are Dealing With. In September 2012, in an interview with "Rock the Red" the following exchange took place, "Question: How do you think Romney and Paul Ryan came across? Do you think that they came across as the answer to the problems that a lot of Americans are dealing with? Tillis: I think that, I think what they did and what I really believe is that the DNC should do is just recognize that there is a problem. In the week that the deficit surpassed 16 trillion dollars don't pretend that nothing but a threat to national security and our economic security. I met both Gov. Romney and Rep. Ryan on a personal basis. I'm convinced that they get the structural problems that need to be dealt with and I know that they can do it. They need to communicate that in a way the average voter, the average citizen can understand and I think if they do they will be very successful." [Transcript, Rock the Red Interview, 9/5/12] (video)

Tillis "Has Expressed Support For A Congressional Budget That Would Have Involved Vouchers For Private Insurance. In September 2014, WRAL reported that Tillis "has expressed support for a congressional budget that would have involved vouchers for private insurance." [WRAL, 9/3/14]

AARP: Under Premium Support Plan, "Newly Eligible Medicare Beneficiaries Would Receive Their Health Coverage Through Private Insurance Plans, Not Traditional Medicare." In June 2012, the AARP published a "for and against" argument for the option of changing Medicare to a premium support plan. They stated: "Under this proposal, newly eligible Medicare beneficiaries would receive their health coverage through private insurance plans, not traditional Medicare." [AARP, 6/4/12]

CBO: Ryan Policies Would Cut Medicare Benefits and Seniors Could Face Higher Costs. In March 2012, the Hill reported: " CBO said it's possible that seniors would face higher costs under the Ryan plan, and said other possible side effects include 'reduced access to health care; diminished quality of care; increased efficiency of health care delivery; less investment in new, high-cost technologies; or some combination of those outcomes.'" According to the report, "CBO compared those scenarios to its own estimates for the existing Medicare program, including estimates that assume Congress will continue to avoid certain automatic Medicare cuts. By 2030, average government spending on each new Medicare enrollee would be about $2,000 less under Ryan's plan than the status quo. In 2050, Medicare's per-person spending would be about 42 percent lower under Ryan's proposals. Under the same assumptions -- the existing program remains in place and Congress doesn't let certain cuts take effect -- Medicare would account for 5 percent of the gross domestic product in 2030. The Ryan plan would cut that to about 4.25 percent, CBO said." [The Hill, 3/20/12]

AARP CEO: Premium Support System "Is Likely To Simply Increase Costs For Beneficiaries While Removing Medicare's Promise Of Secure Health Coverage." In a March 2012 letter to Members of Congress in response to the second Ryan budget, AARP CRO Barry Rand wrote, "Rather than recognizing that health care is an unavoidable necessity which must be made more affordable for all Americans, this proposal simply shifts these high and growing costs onto Medicare beneficiaries, and it then shifts even higher costs of increased uninsured care onto everyone else By creating a 'premium support' system for future Medicare beneficiaries, the proposal is likely to simply increase costs for beneficiaries while removing Medicare's promise of secure health coverage -- a guarantee that future seniors have contributed to through a lifetime of hard work The premium support method described in the proposal - unlike private plan options that currently exist in Medicare -- would likely "price out" traditional Medicare as a viable option, thus rendering the choice of traditional Medicare as a false promise. The proposal also leaves open the possibility for private plans to tailor their plans to healthy beneficiaries - again putting traditional Medicare at risk. The plan fails to realize the negotiating power of Medicare and its impact on lowering costs for the Medicare program - such as in Part D of the program. Converting Medicare to a series of private options would undermine the market power of Medicare and could lead to higher costs for seniors." [AARP CEO Barry Rand, Letter To Congress, 3/21/12]

AUDIO: Thom Tillis would give tax breaks to millionaires and those who would ship jobs overseas, and he'd do it by cutting Medicare.

TEXT: Thom Tillis:

Tax Breaks for Millionaires and Corporations

- Raleigh News & Observer, 6/5/12; CNN, 5/5/14

TEXT: Thom Tillis: End Medicare's Guaranteed Coverage for Seniors

- AARP, 3/21/12; The Hill, 3/20/12

TILLIS SUPPORTED THE 2012 RYAN BUDGET

Tillis Said The Ryan Plan Was "Absolutely" Comparable To What He Would Push In The North Carolina Legislature. "As Congressman Paul Ryan pitched his budget plan Tuesday in Raleigh, he sat between two important Republicans listening intently: Senate leader Phil Berger and House Speaker Thom Tillis. Ryan's budget calls for serious reductions in federal spending, privatizing Medicare plans and eliminating the six current tax rates to two, 10 percent and 25 percent. Tillis suggested elements of the plan are a model for North Carolina, particularly eliminating taxes and loopholes. Asked whether Ryan's plan is comparable to what the legislature is doing at the state level, Tillis said 'absolutely.' 'If you take a look at our strategy for broadening the (tax) base and lowering the (tax) rate ... and eliminating loops holes, it's exactly the same framework,' he said. [ ] Tillis said he expects the North Carolina's version of the Ryan to be in place by July 2013." [Raleigh News & Observer, Under the Dome, 6/5/12]

Tillis "Eagerly Embraced" The 2012 Ryan Budget. In May 2014, CNN reported: "In 2012, Tillis eagerly embraced that year's version of the House Republican budget drafted by Wisconsin Rep. Paul Ryan. Questioned about this year's budget plan -- specifically if he supports Medicare vouchers -- Tillis punted. 'I haven't studied it to the position where I can really give you a well-informed response,' he said." [CNN, 5/5/14]

WHICH WOULD GIVE TAX BREAKS TO MILLIONAIRES AND CORPORATIONS THAT SHIP JOBS OVERSEAS

Millionaires See An Average Tax Cut of $394,000 Under GOP Budget. According to an analysis by the Tax Policy Center, "those making $1 million or more would enjoy an average tax cut of $265,000 and see their after-tax income increase by 12.5 percent." [Tax Policy Center, 3/23/12] Moreover, the House Republican budget extended President Bush's tax cuts, resulting in a $129,000 tax cut for millionaires. Consequently, millionaires would see an average tax cut of $394,000. [cbpp.org, 4/12/12]

* GOP Budget Gave "Huge Benefits" to the Wealthy. According to an analysis by the Tax Policy Center, the House Republican budget "budget plan would result in huge benefits for high-income people and very modest--or no-- benefits for low income working households." [Tax Policy Center, 3/23/12]

* GOP Budget Gave "Giant Tax Breaks" to the Wealthy. Under the House Republican budget, the wealth would receive "giant tax breaks." [Editorial, Star-Ledger, 3/22/12]

* CBPP: The Ryan Plan's Tax Proposals "Disproportionately Benefit Wealthy Americans." According to a statement by Robert Greenstein, the president of the Center on Budget and Policy Priorities: "In fact, TPC reported yesterday that the four major new tax cuts in the Ryan plan -- cutting the top income rate to 25 percent and creating a lower tax bracket of 10 percent, cutting the corporate income tax rate to 25 percent and exempting from taxation the profits that U.S. corporations earn overseas, repealing the Alternative Minimum Tax, and repealing the tax increases in health reform -- would cost $4.6 trillion in lost federal revenue over the next ten years (not counting the overseas corporate profits exemption). All four revenue-losing measures would disproportionately benefit wealthy Americans." [CBPP.org, 3/21/12]

GOP Budget Risked Encouraging Companies to Ship Jobs Overseas. Under the House Republican budget, companies may be encouraged to ship jobs overseas: "Republicans say the current system unfairly taxes corporations twice, hurts their competitiveness and discourages them from reinvesting in the U.S. The budget plan doesn't specify a tax rate for foreign earnings brought back to the U.S., but some Republicans previously have suggested exempting 95% of future foreign earnings from U.S. corporate tax and imposing a 5.25% tax on existing overseas earnings. Critics say such a move would prompt American firms to avoid taxes by moving operations overseas even faster than they already are, harming American workers and reducing investment in the U.S." [Emphasis added; Wall Street Journal, 3/20/12]

* GOP Budget Scrapped Most Taxes on Overseas Profits. Under the House Republican budget, most taxes on overseas profits would be eliminated. [CBS News, 3/20/12]

* GOP Budget Eliminated Taxes on Foreign Profits of US-Based Multinationals. Under the House Republican budget, taxes on foreign profits of US-based multinationals would be eliminated. [cbpp.org, 3/22/12]

* Ryan Plan Would Put U.S. Under A Territorial System, Which Would "Tax U.S. Companies' Overseas Profits At A Low Rate, If At All." In March 2012, the National Journal reported: "In a direct shot against the Democrats and President Obama's repeated call for greater taxes on the wealthy, Ryan, R-Wis., has released his own tax proposal that would slash individual and corporate tax rates and create a 'territorial' tax system that would tax U.S. companies' overseas profits at a low rate, if at all." [National Journal, 3/19/12]

* Reed College Economist: Under A Territorial Tax System "The Tax Incentive To Locate Jobs In Low-Tax Countries Would Increase Significantly" Which "Would Increase Employment In Low-Tax Countries By About 800,000 Jobs." According to a study by economist Kimberly Clausing, "What would the effects be if the United States shifted to a pure territorial system? it would encourage job creation abroad instead of at home. Based on my research and that of other experts in international taxation, it is possible to estimate how many jobs are at stake in this debate. In 2008 U.S. multinational firms employed 10 million workers in affiliated firms abroad. Under a pure territorial tax system, the tax incentive to locate jobs in low-tax countries would increase significantly, which I calculate would increase employment in low-tax countries by about 800,000 jobs." [Kimberly A. Clausing, A Challenging Time for International Tax Policy, Tax Notes, 7/16/12]

* Reed College Economist: Under A Territorial Tax System, The 800,000 Jobs Created Overseas "Could Displace Jobs At Home." "Under a pure territorial tax system, the tax incentive to locate jobs in low-tax countries would increase significantly, which I calculate would increase employment in low-tax countries by about 800,000 jobs If U.S. unemployment rates are low, jobs abroad need not displace jobs at home, although the composition of jobs may change (and multinational corporate jobs are often good, high-wage jobs). In this economy, however, those new, low-tax-country jobs could displace jobs at home." [Kimberly A. Clausing, A Challenging Time for International Tax Policy, Tax Notes, 7/16/12]

* Experts Warned That A Territorial Tax System Could "Blow A Hole In Tax Revenue, Give Multinationals More Leeway To Exploit Tax Havens And Drive Jobs Overseas." In December 2012, the Washington Post reported: "Some tax experts warn, however, that such a change could radically alter how companies behave and have broad implications for the economy. Without the right safeguards, they say, eliminating taxes on foreign profits and switching to what is known as a 'territorial' system would blow a hole in tax revenue, give multinationals more leeway to exploit tax havens and drive jobs overseas." [Washington Post, 12/1/12]

AND DID IT BY CUTTING MEDICARE

CBO: Ryan Policies Would Cut Medicare Benefits and Seniors Could Face Higher Costs. In March 2012, the Hill reported: " CBO said it's possible that seniors would face higher costs under the Ryan plan, and said other possible side effects include 'reduced access to health care; diminished quality of care; increased efficiency of health care delivery; less investment in new, high-cost technologies; or some combination of those outcomes.'" According to the report, "CBO compared those scenarios to its own estimates for the existing Medicare program, including estimates that assume Congress will continue to avoid certain automatic Medicare cuts. By 2030, average government spending on each new Medicare enrollee would be about $2,000 less under Ryan's plan than the status quo. In 2050, Medicare's per-person spending would be about 42 percent lower under Ryan's proposals. Under the same assumptions -- the existing program remains in place and Congress doesn't let certain cuts take effect -- Medicare would account for 5 percent of the gross domestic product in 2030. The Ryan plan would cut that to about 4.25 percent, CBO said." [The Hill, 3/20/12]

AARP CEO: Premium Support System "Is Likely To Simply Increase Costs For Beneficiaries While Removing Medicare's Promise Of Secure Health Coverage."

In a March 2012 letter to Members of Congress in response to the second Ryan budget, AARP CRO Barry Rand wrote, "Rather than recognizing that health care is an unavoidable necessity which must be made more affordable for all Americans, this proposal simply shifts these high and growing costs onto Medicare beneficiaries, and it then shifts even higher costs of increased uninsured care onto everyone else By creating a 'premium support' system for future Medicare beneficiaries, the proposal is likely to simply increase costs for beneficiaries while removing Medicare's promise of secure health coverage -- a guarantee that future seniors have contributed to through a lifetime of hard work The premium support method described in the proposal - unlike private plan options that currently exist in Medicare -- would likely "price out" traditional Medicare as a viable option, thus rendering the choice of traditional Medicare as a false promise. The proposal also leaves open the possibility for private plans to tailor their plans to healthy beneficiaries - again putting traditional Medicare at risk. The plan fails to realize the negotiating power of Medicare and its impact on lowering costs for the Medicare program - such as in Part D of the program. Converting Medicare to a series of private options would undermine the market power of Medicare and could lead to higher costs for seniors." [AARP CEO Barry Rand, Letter To Congress, 3/21/12]

Ryan Plan Radically Changes Medicare By Ending The Guaranteed Benefit For Seniors. "Democrats' efforts to cast Ryan - and, by extension, Romney - as a threat to Medicare could be key in the election. Ryan's plan calls for an end to the guaranteed benefit in Medicare and replaces it with a system that would give vouchers to recipients to pay for health insurance." [Reuters, 8/12/12]

Ryan Plan Cut Medicare Spending To Get "The Extra Margin Needed To Pay For Tax Cuts." In September 2012, Politico reported: "In a little-noticed but vital change last spring, the House Budget Committee chairman cut half a point from the annual growth rate he had allowed for Medicare spending. It gave him the extra margin needed to pay for tax cuts and still placate the right by getting to balance in 2040. But it meant breaking with Ryan's fellow Medicare reformer, Sen. Ron Wyden (D-Ore.), and raised this question that echoes now in the presidential campaign: Did Ryan cut corners with seniors to pay for tax cuts just as he accuses President Barack Obama of doing to finance health care reform? Indeed, calculations by POLITICO -- drawn from a Congressional Budget Office analysis commissioned by Ryan in March -- show that without the half-point cut, the House Republican budget would still be in the red in 2040. And Ryan's small adjustment compounds greatly over time: lowering spending for Medicare by hundreds of billions from 2030 to 2040 and well over $1 trillion from 2040 to 2050." [Politico, 9/26/12]

* Sen. Murray: Ryan Plan "Would End The Medicare Guarantee For Seniors In Order To Guarantee Even More Tax Cuts For The Rich." In March 2012, Sen. Patty Murray issued a press release that said: "Today, U.S. Senator Patty Murray (D-WA) released the following statement after House Budget Committee Chairman Paul Ryan unveiled the Republican budget. 'This budget highlights the upside-down priorities of Republicans. At a time when older and middle-class Americans are struggling to get by, this budget would end the Medicare guarantee for seniors in order to guarantee even more tax cuts for the rich. This plan is not only out-of-touch with reality, it would be damaging to our fragile economic recovery.'" [Office of Sen. Patty Murray, 3/20/12]

* Families USA: Ryan Budget Used Medicare Cuts To Pay For Tax Breaks For The Rich. In October 2012, Families USA did a study on the Romney-Ryan Medicare plan. They stated: "Ironically, Congressman Ryan's budget proposal--originally embraced by Governor Romney--would reduce Medicare spending by the same amount as the Affordable Care Act. The difference is that the Ryan budget uses those savings to pay for tax cuts for the rich instead of improving benefits for people in Medicare." [Families USA, October 2012]

AUDIO: Thom Tillis may be Speaker of the House but he sure doesn't speak for me.

TEXT: North Carolina can't trust Thom Tillis.

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