Third Way

Scroll to Info & Navigation

‘Fiscal cliff’: Do Democrats have a plan for cutting entitlements?

— David Kendall, Senior Fellow at Third Way in The Washington Post’s ThinkTanked Blog:

Let’s be honest. In any significant budget deal, at least one of the major safety net programs, Medicare, will have to be trimmed. What has us scratching our heads is that many Democrats see this as a concession.

Since Roosevelt’s time, Democrats have toiled to weave an adequate safety net, beginning with Social Security and most recently with Obamacare. The new challenge is to keep these programs solvent and affordable.

Yet fixes are seen as a betrayal by many of the same progressives that support the programs. It shouldn’t be. Dollars can be saved and progressive principles maintained for the two major pillars of a secure retirement.

Social Security, whether fixed during cliff negotiations or separately, is simple. For 50 years, the retirement age has been adjusted so the typical beneficiary receives full benefits for 18 years. That seems reasonable. Starting in 2028, we should gently raise the retirement age to keep pace with increases in longevity and maintain the principle of 18 years of full benefits for future retirees. In addition, by slowly increasing the threshold for income that is subject to the payroll tax we can come close to achieving solvency.

For Medicare we don’t need an overhaul, but rather a series of fixes that save money and improve quality. End-of-life care has become a flurry of costly and painful medical treatments that most patients don’t want. Medicare should encourage doctors to talk with their patients about their care before that happens. Medicare should also pay more to doctors who keep patients healthy and less to those who only treat sickness. Private health plans have proven that small shifts from sickness care to prevention can save big bucks. There are dozens of other ideas that work.

This is why Democrats should run to, not from, entitlement fixes.

From Fiscal Cliff to Immigration Reform, What Will the Next Four Years Bring?

President Obama has a second term to address major issues, including immigration, the fiscal cliff and health care. But with Congress still divided, compromise and cooperation may remain elusive. Watch PBS’s Gwen Ifill talk to Third Way’s John Cowan and The Wall Street Journal’s Naftali Bendavid on the reality for the next four years.

What’s on the Ballot? (UPDATED with Results)

President Obama’s re-election was not the only important issue on the November 2012 ballot. Several states’ voters faced important initiatives with possible national implications, and the results of those votes are listed below.

Here’s a Quick Overview:

  • Of the 4 marriage votes, 3 supported marriage (ME and MD legalizing, MN not banning) and in 1 it is too soon to tell (WA).
  • Of the 2 abortion votes, 1 restriction passed (MT) and 1 restriction failed (FL).
  • Of the 2 immigration votes, 1 went in favor of immigrants (MD DREAM Act) and 1 went against immigrants (MT proof of citizenship).
  • In the 1 affirmative action vote, the practice was banned (OK).
  • In the 1 dying with dignity vote, it is too soon to tell (MA).
  • Of the 6 marijuana votes, 3 passed (MA, CO, WA), 2 failed (AR, OR), and in 1 it is too soon to tell (MT).

(More details after the jump)

Read more

The Truth About Medicare: Sorting out fact from fiction

As the candidates continue to compare and contrast their respective plans for Medicare reform on the campaign trail, Minnesota Public Radio was joined by two experts who help them sort out fact from fiction.

The federal program provides health insurance to 50 million seniors and disabled Americans. What will each plan really mean for current and future Medicare recipients? How much will the plans cost?

Featuring Stephen Parente, professor of health finance at the University of Minnesota and a former adviser to Sen. John McCain’s presidential campaign, and David Kendall, senior fellow for health and fiscal policy at Third Way.

LISTEN: Medicare: Sorting out fact from fiction in proposals

What’s on the Ballot?

The Presidential & Congressional elections are not the only important votes on the November 2012 ballot. Several states will also ask voters to weigh in on key ballot initiatives that could have national implications. We’ve put together a guide to some of the most important initiatives and referenda below. We’ll update this cheat sheet after the election so that you can see how they fared with voters in their states!

Read more

What Makes the Middle Class?
Did you happen to notice how, at both conventions, speaker after speaker talked about how much the party’s candidate would do for “the middle class”? “Unlike President Obama, I will not raise taxes on the middle class,” Mitt Romney said. President Obama promised “a future where we reduce our deficit without sticking it to the middle class.”
What exactly do Americans mean when they call themselves middle class? Just this: neither rich nor poor. That’s why middle class Americans support tax hikes for the rich. If they’re for the rich, I won’t have to pay them. That’s also why middle class Americans are suspicious of government programs to help the poor. If they’re for the poor, they won’t do me any good (and I may have to pay for them).
The Pew poll asked Americans what it takes to be in the middle class today. The top answer by far: a secure job. That’s why jobs are the number one issue this year. Without a secure job, you can’t be in the middle class. Fewer than half of Americans now say you have to own your own home to be in the middle class. The figure was much higher (70%) in 1991, when a similar question was asked. The collapse of home prices since 2006 has had a devastating impact. Owning a home is no longer seen as a guarantee of security.
Read more in Bill Schneider’s Inside Politics Newsletter - September 2012.

What Makes the Middle Class?

Did you happen to notice how, at both conventions, speaker after speaker talked about how much the party’s candidate would do for “the middle class”? “Unlike President Obama, I will not raise taxes on the middle class,” Mitt Romney said. President Obama promised “a future where we reduce our deficit without sticking it to the middle class.”

What exactly do Americans mean when they call themselves middle class? Just this: neither rich nor poor. That’s why middle class Americans support tax hikes for the rich. If they’re for the rich, I won’t have to pay them. That’s also why middle class Americans are suspicious of government programs to help the poor. If they’re for the poor, they won’t do me any good (and I may have to pay for them).

The Pew poll asked Americans what it takes to be in the middle class today. The top answer by far: a secure job. That’s why jobs are the number one issue this year. Without a secure job, you can’t be in the middle class. Fewer than half of Americans now say you have to own your own home to be in the middle class. The figure was much higher (70%) in 1991, when a similar question was asked. The collapse of home prices since 2006 has had a devastating impact. Owning a home is no longer seen as a guarantee of security.

Read more in Bill Schneider’s Inside Politics Newsletter - September 2012.

Myth #12: The uninsured will go to jail

Go to Jail!

If you don’t comply with the individual mandate, what happens to you? You can be subject to five years in prison.
-Rep. Peter Roskam (R-IL) 11/18/2009


Actually, the law specifically states that people who don’t pay the penalty cannot be charged criminally. It also forbids liens or levies placed on property for failure to pay.

Read more in our new memo debunking the 12 biggest myths about the Affordable Care Act.

Myth #11: More Americans will depend on the federal government

"Capitol Hill" via nataliaallen.wordpress.com

A little less than 50 percent of the people in this country depend on some form of government benefit to help provide for them. After Obamacare, it will not be less than 50 percent; it will be 100 percent.
-Rick Santorum, 03/06/2012


Actually, the new law will make coverage affordable to those who cannot afford it now, but the number of people receiving assistance will be well below 100 percent of the population. According to Politi-Fact.com about 60 percent of the population will be receiving some form of government assistance. This assistance includes a tax credit for private insurance, Medicare or coverage through another government program like the VA or federal employee benefits.

Read more in our new memo debunking the 12 biggest myths about the Affordable Care Act.

Myth #10: Too few doctors

“…we won’t have anywhere near enough doctors to care for the expanded volume of patients that Obamacare will create.”
-Marc Seigel, National Review, 03/30/2012


The new law will give more Americans coverage that will help them afford care, and in turn, there will be more demand for services such as primary care, which is already in short supply. Congress anticipated this problem, however, and increased reimbursement and funding for primary care doctors and other health professionals including physician assistants and nurses. President Obama’s administration recently announced an additional $250 million to boost the supply of primary care providers.

Read more in our new memo debunking the 12 biggest myths about the Affordable Care Act.

Myth #9: Employers will stop providing coverage

"health care-capitol.jpg" via mashedpotatobulletin.com

Plan elimination is the first major consequence of PPACA that small-business owners likely feel.
-National Federation of Independent Businesses, 07/2011


Actually, studies by the Congressional Budget Office, the Rand Corporation, and the Urban Institute have shown how employers will continue to have strong incentives to cover their workers. They will continue to compete for the best employees by offering benefits that employees want. Employers and employees will also still have strong tax advantages for employment-based coverage.

Read more in our new memo debunking the 12 biggest myths about the Affordable Care Act.

Myth #7: Insurance costs will go up

Rising Costs

The health care law has caused health insurance premiums to increase for families struggling to make ends meet.
-Rep. Nan Hayworth (R-NY), 06/28/2012


Actually, the new health care law lowers administrative costs for employers and employees and increases choice and competition in health insurance. A family of four will save as much as $2,300 on their premiums in 2014 compared to what they would have paid without reform, according to the Congressional Budget Office. Premiums for the same plan will be up to 2 percent lower for small businesses and 3 percent lower for large businesses.

Read more in our new memo debunking the 12 biggest myths about the Affordable Care Act.

Myth #6: Illegal immigrants will get free coverage

Keep OUT!

The president specifically promised the American people that ‘Obamacare’ would not cover those who are here illegally. He misled all of us.
-Rep. Joe Wilson (R-SC), 08/15/2011

Actually, the health care law goes out of its way to prevent benefits from going to illegal immigrants. It continues the current ban on coverage for illegal immigrants in Medicaid and extends the ban for all new benefits. Moreover, illegal immigrants won’t be able to buy coverage with their own money through the new public program called an insurance exchange.

Read more in our new memo debunking the 12 biggest myths about the Affordable Care Act.