Texas Rep. Sheila Jackson Lee Opposes Entitlement Reforms

According to the Houston Chronicle, Rep. Sheila Jackson Lee, D-Texas, has created a stir by ruling out any changes to entitlement programs to avoid the fiscal cliff in a speech on the floor of the House.

Politico reports, however, that Lee expressed a little more flexibility where it came to tax increases.

Lee: Entitlements are earned

According to the Houston Chronicle, Lee created a controversy when she suggested that entitlements such as Social Security, Medicare, and Medicaid are not "handouts" but are "earned." Lee was technically correct about Social Security and Medicare, since people pay into those funds before receiving their benefits upon becoming senior citizens. Medicaid is a health care program for the poor.

Lee rules out reforming entitlements

In the same speech, as reported by the Houston Chronicle, Lee seemed to rule out reforms to entitlements in order to address the fiscal cliff crisis or the long term budget deficit. In Lee's view there should be no raising the eligibility age of Medicare, no "carelessly considered" Medicaid changes, and no changes to Social Security at all.

Entitlements face insolvency

Despite what Lee suggests, the Los Angeles Times quoted from a report from the federal government issued in May 2011 that both Medicare and Social Security face insolvency. Medicare will start running a deficit in 2024. Social Security will become insolvent in 2036. This suggests that the trillion-dollar-plus budget deficit aside, both programs need to be reformed sooner rather than later. According to the Hill, the White House and liberals in the Congress are digging in against cuts to Medicaid, a program that is administered and paid for jointly by the federal government and the states.

Lee shows flexibility concerning tax increases

Politico, on the other hand, reports that Lee is being a little more flexible concerning tax increases on the so-called "rich." President Obama is insisting that taxes go up on families making over $250,000 a year. Republican congressional leaders seem to agree, despite misgivings on raising taxes in a time of economic malaise. The argument is over the amount. Obama is demanding that taxes rise by $1.6 trillion by raising rates. Congressional Republicans are willing to raise taxes by about $800 billion by limiting deductions and loopholes. Lee seemed to suggest a willingness to compromise by splitting the difference down the middle at about $1.2 trillion. However, as of this writing, no agreement has been reached for a deficit package that will avert the fiscal cliff, looming on Jan. 1.

Texas resident Mark Whittington writes about state issues for the Yahoo! Contributor Network.

Source: http://news.yahoo.com/texas-rep-sheila-jackson-lee-opposes-entitlement-reforms-181000723.html

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