No Paul Ryan, Payroll Taxes Are NOT Going Towards ObamaCare

Paul Ryan has been LYING about Obamacare and payroll taxes.

During a campaign stop at Miami University in Ohio, Paul Ryan made the claim that payroll taxes will now be used to fund the Affordable Care Act:

"Ryan slightly reframed the attack by arguing that Obamacare is effectively taking hundreds of billions from payroll taxes. “Take a look at your paycheck next time. Look at that line on your paycheck that [reads] payroll taxes," Ryan said. "You see our payroll taxes from our paychecks are supposed to go to two programs--Social Security and Medicare period. Now because of Obamacare they’re also going to pay for Obamacare." The crowd booed." (emphasis mine)

One problem with this: It is completely false. And the Romney campaign knows it.

Earlier this week, FactCheck.org released probably the best article on Mediscare claims since they began resurfacing after the Ryan VP pick. This article is an absolute must read for anyone wanting to understand how Medicare works, as well as what Romney, Ryan, and Obama each plan to do about Medicare's fiscal problems. The article begins with explaining the troubles Medicare faces down the road, mainly focusing on insolvency (which is different from bankruptcy). The article then summarizes the history of Medicare, as well as the different "Parts" of Medicare (A,B,C, and D). Understanding this is crucial for understanding the Ryan, Romney, and Obama Medicare plans (Obama has already passed his plan as part of the ACA). Here is a basic summary of what each Part of Medicare covers:

• Medicare Part A: Hospital insurance
• Medicare Part B: Insurance for doctor visits
• Medicare Part C (Medicare Advnatage): Combines both Part A and B but uses a private insurer.
• Medicare Part D: Prescription Drugs

The article also debunks the claims from both the Obama and Romney campaigns about how each candidate plans to cut benefits and push the cost of healthcare further onto seniors. I will not spend any time in this post talking about whether or not either campaign's arguments hold water (See my previous post and Roundup from last week for that). This post will be dedicated to understanding why Paul Ryan is lying about payroll taxes going to fund the Affordable Care Act (Obamacare, PPACA, ACA).

One area where FactCheck's article falls a bit short is on explaining why Paul Ryan's claim mentioned above is wrong. The article is a bit vague and inconclusive. However, a campaign speech by Paul Ryan finally motivated FactCheck to get more detailed and help explain specifically why Paul Ryan's claim is wrong (the article also debunks Medicare bankruptcy claims). This article is another absolute must read. I will summarize and expand here:

Medicare payroll taxes go to pay for Medicare Part A. What revenue is left over goes into the Medicare Hospital Insurance trust fund. And that fund goes to finance shortfalls in Medicare Part A. As of late, there is not enough revenue coming from payroll taxes to cover hospital insurance for medicare beneficiaries. As a result, the trust fund is being drained and will eventually be empty, meaning Medicare Part A will become insolvent. To help mitigate the problem, the Affordable Coverage Act slows the amount of money coming out of the trust fund via reduced payments to hospitals. Obama can get away with those reduced payments to hospitals largely without causing them to drop out of the program because of a deal he stuck with hospitals, promising new patients through the ACA, more than making up for the lost revenue. This saved money stays in the trust fund (although it can be loaned out, more on that later).³ It does not go to cover the uninsured not currently in Medicare. In addition, Obama increases the revenue coming into the trust fund via a 0.9 percent tax "on earnings above $200,000 for single taxpayers or $250,000 for married couples."

The savings from Medicare that actually go into Obamacare come from Medicare Parts B, C, and D, and only from funds that come from congress (income taxes, corporate taxes, etc...) to cover outlays. This accounts for approximately 2/3 of $716 Billion in slowed medicare growth. Obama decreases the growth of money congress spends on Medicare from general revenue using the Independent Payment Advisory Board, which is incredibly limited¹ in what it can target.

So it should be pretty clear Paul Ryan's claim is false. But remember I accused Ryan of more than just telling him a falsehood. I accused him of lying, meaning he knew what he was saying was false. What is my evidence? Besides Ryan's work on the medicare program (meaning he should know this Medicare 101 knowledge) and acceptance of Obama's ACA Medicare savings (he should know what he is accepting), when FactCheck asked Romney's campaign about their claims, the campaign responded this way:

"When we asked the campaign how it could argue that Obama’s spending reductions didn’t extend the life of the trust fund, a spokesman replied that it didn’t extend the fund “unless the administration is ready to admit their law blows a huge hole in our deficit.”"

So essentially they are accusing Obama of double counting the savings from hospital insurance. If that money has to be put into the trust fund, it can't also cover the non-Medicare related Obamacare expenses. Fact Check explains (from their original article):

"The fact is that CBO and the guardians of the hospital trust fund say Obama’s health care law does both extend the life of the trust fund and reduce the deficit, but can’t be also counted as paying for the law’s added spending."

This may sound a bit confusing. It essentially comes from the fact that a bill can both reduce the deficit and not be "paid for." This is because some of the revenue that comes in goes "into savings" instead of being used to pay the bills. And just like a bank uses savings accounts to make loans, so too can this Medicare money "in savings" be loaned out to pay for other programs.² FactCheck explains:

"What happens in government accounting is that after Treasury issues a bond that it will have to pay later, it can spend the money it received on other things. And it often does, whether that’s coverage expansion, as called for in the health care law, or any number of things. The Romney spokesman said it was “a shell game.”"

But that doesn’t mean that the Medicare trust fund will be slashed or its “piggy bank” “robbed” or “raided,” or any other claim we’d put firmly in the category of “senior scare.” (emphasis mine)

Romney does have a point in essentially calling this an accounting trick. And he could spend time making that claim instead of a demonstrably false one. You can argue over whether or not the CBO was therefore wrong to say the ACA cuts the deficit (see Update 8/28/12). But you cannot say payroll taxes are going toward the ACA anymore than you can say your personal savings in the bank are going toward someone else's loan. Just like those savings are still legally yours, so are the trust funds still legally Medicare's. Any money that is borrowed from the fund has to be paid back. The Romney campaign knows this and it is reasonable to assume Ryan does as well. So he knows payroll taxes will not fund the ACA, yet he still makes that claim. It is a lie.

¹ Most of what the IPAB targets is the extra money paid into Medicare Advantage (Part C,except for hospital insurance), making costs from the expensive program fall into line with traditional Medicare. You can argue this will indirectly affect benefits, but the program is forbidden from directly cutting benefits. Romney and Ryan, on the other hand, give congress practically unlimited power to save money however they desire, including through benefits (and we all trust congress, don't we). As Ezra Klein and others have repeatedly noted, ObamaCare and Ryan's plan call for approximately the same-sized reductions in future medicare growth. The difference is in how it is implemented. Without a doubt though, Romney's plan to avoid the $716 in slowed growth is the worst. It will actually hasten insolvency.


Update 8/28/12:

For the last few weeks, the Washington Post Fact Checker has been on vacation. So he as not been posting fact checks on this issue since the Ryan VP pick. Today he finally posted a response to readers' questions on Medicare Cuts, bankruptcy, and cost shifting. Overall, the post was not all that impressive compared to FactCheck's posts. However, he did link to an old article talking about the "double counting" issue mentioned above. This article is another absolute must read for anyone interested in this issue. It turns out double counting has been an acceptable practice for both parties for the last few decades. That's right, Republicans use this as well:

"When President Bill Clinton signed the Balanced Budget Act of 1997, then House Speaker Newt Gingrich (R-Ga.) was one of the speakers. “On Medicare, we came together and we saved the system for at least a decade,” he declared. How could he make this claim? Through the same double-counting that Republican now decry. The

Fact Checker especially frowns on hypocrisy, and Republicans should acknowledge that they have gladly played this game before, including under President George W. Bush." (emphasis mine)

However, playing the "you did it too" game is not a good excuse for doing something potentially harmful. But it does turn out this practice isn't really that bad, since it increases gross debt without increasing public debt. The Fact Checker explains:

"Some argue that the increase in the gross debt is evidence of double-counting but the CBO has said that focusing on the health care law’s impact on the gross debt is not very illuminating: “That measure of debt conveys little information about the federal government’s future financial burdens and has little economic meaning.” (emphasis mine)

This may explain why the Romney campaign has avoided this line of argument and instead chosen a demonstrably false line of argument. He would be open to criticisms that both parties do this and could put the reputation Reputation of congressional Republicans in 1997 in jeopardy. It is much easier to tell a simple lie.

Note: Just to head off a potential criticism, Ryan cannot say that he was talking about Medicare funds being loaned Obamacare when he said payroll taxes were being used to fund Obamacare. If he had meant it in this way, he would have to admit payroll taxes also fund national defense, congressional pay, the war on drugs, and most any program funded by congress through general revenue. However, his statement started by claiming that payroll taxes only fund Medicare and Social Security. So either way, he was lying.

² I reworded this to make it clearer. It used to say "However, as with any "savings account", that money is available for other uses when it's not being spent"

³ I added the qualifier in parenthesis to make it clear that this money can still be loaned out, even if it still belongs to the trust fund. It has to be paid back.

The Roundup

Best Thing to Happen to The Internet Since Al Gore! ... Here is a cat singing the theme from Game of Thrones (Thanks to The Washington Post):

Yet another reason to subscribe to Ezra Klein's RSS...

Steven Novella: Nocebo Nonsense

"Chopra’s article was inspired by a New York Times article by researchers into nocebo effects. The researchers, however, make very different points from Chopra. They review the scientific evidence, which is pretty clear. People will report negative side effects even when taking placebos. If they are warned about a particular side effect, they are more likely to report that one. Again – there is no reason to think this is anything other than subjective reporting. Stress is the one factor that can cause real physiological consequences, and therefore illnesses that significantly respond to stress (like heart disease) can be affected by anxiety or hopefulness. This is not true, however, of most diseases." (emhpasis mine)

The Solyndra Standard
A MUST READ on the GOP's hypocrisy in the Solyndra case. Stephen Lacey puts the case in context:

"And here’s the really astonishing disconnect: While supporting tens of thousands of jobs, the loan guarantee program is expected to cost $2 billion less than Congress budgeted for, according to an analysis from Herb Allison, John McCain’s former National Finance Chairman.

Meanwhile, amidst the Solyndra saga, we casually accept a $300 million aircraft failure without batting an eye. No outrage. No sustained political campaign. It’s just another day testing our military toys.

Why? Because we don’t often see programs like this as a “failure” in the political arena. We would never use one failure as an excuse to abandon investment in new technologies. Most politicians accept losses in military R&D expenditures because the long-term gains are potentially so important for national defense and for eventually developing technologies for civilian use.

We should always strive to make programs as efficient and cost-effective as possible. But a few bankrupt clean energy companies representing a fraction of the program’s budgeted cost is no excuse for abandoning federal investments in clean energy — a strategically important sector that is becoming one of the largest drivers of business this century." (emphasis mine)

Will the Fed’s efforts to boost the economy only benefit the wealthiest?
Thanks to the inaction of congress, quantitative easing may be one of the last options to help stimulate the economy. It effectively lowers the value of debt using inflation, which could help tackle the crippling deleveraging that is keeping consumer demand down and slowing the recovery (particularly in the housing market). But there is a price. That price is increased income inequality.

Great hyperinflation episodes in history — and what they tell us about the Fed
A MUST READ:
A look at historical cases of hyperinflation point to why it is absurd to suggest it will happen in the US any time soon:

"none of the most severe instances of hyperinflation appear to be triggered by a central bank simply trying to inject money into a basically intact economy in order to reduce the unemployment rate." (emphasis mine)

Conservative Group Plans to Push Republicans Toward Action on Climate, Cleaner Energy

"Leading members of the Christian Coalition and the Young Republicans on Monday will launch nationwide the Young Conservatives for Energy Reform, a grassroots group aimed at engaging Republicans on the goals of cutting oil use, backing alternative energy and clean-air regulations, and fighting climate change."

Can these groups pull the GOP away from the propaganda of the fossil fuel industry?

The politics and philosophy of racism
Two points:

1. Turns out racists aren't necessarily more likely to be republican than democrat. 
2.  Libertarianism will not sure racism for essentially the same reason free markets work: individual cases of racism are "spontaneous orders—of phenomena that are the product of human action, but not of human design" 

2013 may be the year of Austerity. Isn't that what the GOP wanted so badly back in 2010?

Poll: Republicans Really Aren't Big Fans of Arabs or Muslims

Brutal Attack On Palestinian Met With Near-Universal Rebuke among Israelis

On the Progressive Consumption Tax and What it means for people like Romney.

Very good story about the debate over the minimum wage.

Quote of the Day: Early Voting a Bad Idea Because it Makes it Easier for Blacks to Vote

NPR debunks the myth of the "independent voter".

The Roundup: Election Edition

Greg Sargent: The Morning Plum: No, Romney and Ryan don’t really want a `great debate’

"Romney wants to repeal the unpopular Obamacare, and promises he’d do something for some people with preexisting conditions — because replacing it with nothing would be even more unpopular. Romney says he’d get rid of Wall Street reform, and vows to replace it with unspecified “common sense” regulations — because replacing reform with nothing is also a political nonstarter. Romney says he’d cut whole agencies to make government more efficient and cost-effective, but won’t say which ones; and Ryan won’t explain in meaningful detail how he’d achieve the draconian spending cuts necessary to make his numbers work — because when the talk turns to specifics, suddenly cutting government is politically very difficult indeed, and gutting social programs would be very unpopular. Romney and Ryan won’t say how they’d pay for their tax cuts — because they must be paid for by hiking the middle class’s tax burden or exploding the deficit, neither of which is politically palatable." (emphasis mine)

When asked about cutting the size of government, most people are conservatives. When you get into asking about the specifics, the leftward shift is incredible!


Ezra Klein: Obama’s money gap: Incompetence, incumbency or meaningless?
Romney is currently outspending Obama 2 to 1, partly because of Obama's negative attitude toward wall street. However, there seems to be little if any effect on the polls. The country already largely feels like they know Obama. So negative a advertising will only do so much to hurt him. Romney would theoretically be better off running on his own strengths rather than attack Obama. But those strengths in the most important areas (jobs, budget) are quite suspect to say the least.

Ezra Klein: The real Romney-Ryan budgets cuts aren’t to Medicare. They’re to programs for the poor.

"And so, if you look at Ryan’s specific cuts, most of them are programs for poor people. In fact, the Center for Budget and Policy Priorities estimates that more than six of every 10 dollars Ryan cuts from the federal budget is coming from programs for the poor" (emphasis mine)

And Romney's is MUCH worse!

No, Republicans Have Not Suddenly Developed a Love of Policy Wonkery

"Conservatives are excited about Ryan because he's a true believer, not because they've developed a sudden love of budget wonkery. They would have been equally ecstatic about Bobby Jindal or Marco Rubio, and they're breathing a sigh of rel ief that Romney didn't pick Rob Portman or Tim Pawlenty, both of whom are plenty serious policy wonks but don't have quite the right-wing fire in their eyes that the other guys do."

Desperate Measures: Paul Ryan Tries To Revive the “Death Panel” Canard
Spreading malicious lies about ObamaCare in 2010 helped bolster Republicans to take over the house in 2011. Only problem, Obama is campaigning now and, even though he is behind in spending (for the last month or so), he has money in the cof fers to help keep him from falling too far behind. And he has the incmbant advantage, meaning attacks against him are much less effective. So he has the means to dispel this misinformation campaign (and the sad truth: start some of his own)

"But even if seniors like the first Gen Xer on a presidential ticket personally, the Pew poll shows that they dislike Ryan’s plan even more than their younger counterparts.

This points to an information vacuum, which is why death panels are back, and why this campaign is only going to get uglier from here."

Republicans Wanted a Culture War, Now They're Getting It

"If conservatives do indeed want a "truce" on issues like abortion, that's fine with me: let them start observing one. Leave Planned Parenthood the hell alone. Stop pushing for laws that challenge Roe v. Wade. Shut down all your ultrasounds . Tell Bob Vander Plaats to stop trying to run pro-marriage-equality judges off the Iowa Supreme Court. Take all those dog whistles about "respect for life" and "constitutional originalism" out of your platforms and speeches. Promise us you won't put unholy pressure on a President Romney to ensure the next new member of the Supreme Court will vote to turn abortion policy back to the states or even protect zygotes under the 14th Amendment."

Paul Krugman: Nobody Cares About the Deficit

"If the right was at all consistent, it would be denouncing the CBO report for failing to take into account the impact of a lower deficit in deterring the invisible bond vigilantes and encouraging the confidence fairy."

Five things to know about Mitt Romney’s energy plan 
Five points on Romney's energy plan:

1. North American energy independence is already expected to largely happen by 2020, regardless of who is in the white house 
2. Romney's refusal to accept Obama's fuel-efficiency standards will make his plan more difficult. 
3. Energy independence will not significantly lower prices since oil is still traded in world markets (exhibit A: Canada) 
4. Although energy independence may have gross job gains (likely much smaller than what Romney has predicted), the net effect will likely be insignificant. 
5. Romney does not tackle environmental concerns (global warming, fracking, oil spills), which may mean "public concern over fracking could stymie gas development."

Why the Weak Economy Doesn't Doom Obama

"So think of it this way. In 1980, Jimmy Carter didn't have an argument for re-election that appealed very far beyond the Democratic base. Similarly, in 1984, Walter Mondale simply didn't have much of an argument for getting rid of Ronald Reagan. The Republicans didn't have a good argument for holding on to power in 2006, nor did the Democrats in 2010. The elections reflect that.

This year, Barack Obama has an argument -- he didn't inherit the mess, and the economy is slowly expanding. That's an argument that is probably good enough to get him to 46 or 47 percent of the vote. Similarly, Mitt Romney has a pretty good argument for electing a new president, one that will shore up his base and Republican-leaning independents. Thus, we should probably expect what we're presently seeing in the polls: a close race, to be decided by a relatively small slice of the electorate." (emphasis mine)

Ezra Klein: The GOP has picked the wrong time to rediscover gold
When people think of returning to the gold standard, they think of it as a way of controlling inflation. However, it actually does precisely the opposite. Gold prices are tied to demand across global markets, meaning inflation would be tied to the whims of gold buyers and the fed would lose its ability to control it.

"Unlike 1981, in other words, when the gold standard made a kind of superficial sense as a response to our problems, 2012 is a moment when a gold standard would clearly have worsened our problems. Dramatically. As Eichengreen concludes, the idea’s “proponents paint the gold standard as a guarantee of financial stability; in practice, it would be precisely the opposite.”

Not reimbursing towns for expenses dealing with presidential incumbent campaigns is common for BOTH PARTIES.

Debunking Romney (Part 3): Medicare Claims

This post is part three of a three part series debunking a few central claims that have been made by the Romney campaign this year. The first part deals with Romnay's tax policies, the recent Tax Policy Center study, and Romney's response to that study. The second part deals with the white paper Romney's advisers wrote to attempt to justify his plan. Finally, the third part deals with Romney's recent Medicare claims, as well as his impossible promises on the subject. 


From Ezra Klein of The Washington Post:

I’ve got a modest proposal: You’re not allowed to demand a “serious conversation” over Medicare unless you can answer these three questions:

1) Mitt Romney says that “unlike the current president who has cut Medicare funding by $700 billion. We will preserve and protect Medicare.” What happens to those cuts in the Ryan budget?

2) What is the growth rate of Medicare under the Ryan budget?

3) What is the growth rate of Medicare under the Obama budget?

The answers to these questions are, in order, “it keeps them,” “GDP+0.5%,” and “GDP+0.5%.”

Let’s be very clear on what that means: Ryan’s budget — which Romney has endorsed — keeps Obama’s cuts to Medicare, and both Ryan and Obama envision the same long-term spending path for Medicare. The difference between the two campaigns is not in how much they cut Medicare, but in how they cut Medicare.

...

These plans get at the basic disagreement between Democrats and Republicans on Medicare. Democrats believe the best way to reform Medicare is to leave the program intact but vastly strengthen its ability to pay for quality. Republicans believe the best way to reform Medicare is to fracture the system between private plans and traditional Medicare and let competition do its work.

...

But it’s simply a conservative myth that the White House hasn’t put forward a Medicare reform plan. What that line really means is that White House hasn’t put forward some variant of Ryan’s plan, which in many Republican circles, has come to be seen as the only policy change that counts as “entitlement reform.”

But Obama’s plan is, without doubt, far more detailed than anything Romney has put forward, and Republicans are well aware of its existence." (emphasis mine)

Ironically, Romney has attacked Obama for these cuts to Medicare growth. It should be noted that, of all the ways Medicare growth can be cut under Obama's plan, there is one area that is protected: benefits:

"It’s worth noting that there’s one area these cuts don’t touch: Medicare benefits. The Affordable Care Act rolls back payment rates for hospitals and insurers. It does not, however, change the basket of benefits that patients have access to." (emphasis mine)

In the time since this article appeared, Romney has declared he will not keep Obama's cuts to future Medicare growth, despite the fact that these cuts would keep the Medicare trust fund solvent through 2024 (without them, they could lose solvency as soon as 2016). However, this will also make his budget promises practically impossible. Ezra Klein explains:

"Consider what Romney has promised. By 2016, he says federal spending will be below 20 percent of GDP, and at least 4 percent of that will be defense spending. At that point, he will cap federal spending at 20 percent of GDP, meaning it can never rise above that level.

All that’s hard enough. Romney will have to cut federal spending by between $6 and $7 trillion over the next decade to hit those targets. As my colleague Suzy Khimm has detailed, those budget promises already require cuts far in excess of what even Paul Ryan’s budget proposes.

But Ryan’s budget includes more than $700 billion in Medicare cuts over the next decade, Romney’s budget won’t. And Romney promises that there will be no other changes to Social Security or Medicare for those over 55, which means neither program can be cut for the next 10 years. But once you add up Medicare, Social Security and defense and you’ve got more than half of the federal budget. So Romney is going to make the largest spending cuts in history while protecting or increasing spending on more than half of the budget."

...

"Consider what the Romney campaign, then, is saying: If Romney is elected, then by his third year in office, every single federal program that is not Medicare, Social Security, or defense, will be cut, on average, by 40 percent. That means Medicaid, infrastructure, education, food safety, road safety, the postal service, basic research, foreign aid, housing subsidies, food stamps, the Census, Pell grants, the Patent and Trademark Office, the FDA — all of it has to be cut by, on average, 40 percent. If Romney tried to protect any particular priority, it would mean all the others have to be cut by more than 40 percent.

That’s not even remotely plausible. The consequences would be catastrophic. The outcry would be deafening. And Romney has shown no stomach for selling such severe cuts.

...

And yet Romney, who has never released the specific cuts that would make his numbers add up, repeatedly touts it on the campaign trail, and the media dutifully reports his promises to cut federal spending by more than $500 billion in 2016, and in fact to balance the budget by the end of his second term, which would require far larger cuts than what I’ve outlined here, despite the fact that everyone basically knows these cuts aren’t credible and will never happen.

I’m not sure what alternative there is, exactly, except to say, as clearly as possible, Romney’s budget plan is a fantasy, and it will never happen." (emphasis mine)

But what about Ryan's plan. Isn't it supposed to be a bipartisan option? To answer this question, Ezra Klein interviewed Sen. Wyden (D-OR), then man for whom the "bipartisan" label is referring to:

"Ron Wyden: My view is that the policies that were adopted by the Republican House majority and the Romney campaign do not preserve the Medicare guarantee. And that’s what the [Ryan/Wyden] white paper was all about. It was a set of options for improving on the existing Medicare system with public and private choices, beefing up consumer protection, adopting a new way to control costs and put Medicare on a budget so you can protect the guarantee.

Probably the two most significant specific differences between what Governor Romney is talking about and the white paper is, first, that the Romney campaign and the governor would repeal the Affordable Care Act. To lay a foundation for putting together a program to protect the guarantee and protect the budget, you need the changes the Affordable Care Act makes to Medicare, like bundled payments and moving the system towards pay-for-quality. Without it, you can’t move to premium support.

The second difference is that the Romney approach completely pulls the rug out from under the poorest and most vulnerable seniors. In the white paper, protections for so-called dual eligibles, the people in both Medicare and Medicaid, are bulletproof. There’s no way to throw them under the bus. Gov. Romney says he’d block grant the Medicaid program and push those cuts onto the people, which would do enormous harm to those people whose protection was at the center of the white paper." (emphasis mine)

Indeed there has been little attention to Ryan's proposals for cutting government healthcare spending outside of Medicare. And these cuts are no small thing. For instance, Sen Wyden mentions Ryan's Medicaid cuts, which total $800 Billion. Of course there will be impacts:

"The Urban Institute estimates that between 14 million and 27 million people would lose coverage because of Ryan's spending restrictions."

No wonder this plan isn't really bipartisan. So you have the presidential candidate passing off a nearly impossible solution as serious budget talk, and you have his VP proposing draconian right wing measures and calling them bipartisan. Both are accusing Obama of having no plan for Medicare reform, yet Obama has the most serious and detailed plan of all three. And then they attack him for the plan they claim he does not have! What is going on?! Some conservative pundits actually possess the cognitive dissonance to buy into this. But will the American people?

The Roundup: 

Mediscare Edition

Private-Market Tooth Fairy Can’t Cut Medicare Cost

"The bottom line is that, if anything, Medicare Advantage bids are above, not below, traditional Medicare -- once you do the analysis correctly, on an apples-to-apples basis. So regardless of whether you use the CBO analysis of Ryan 1.0, or the evidence to date with Medicare Advantage to analyze Ryan 2.0, the conclusion is the same.

We don’t want to put all our chips down on the health-care competition tooth fairy."

And yes, he notes that the CBO analysis is of Ryans 2011 plan:

"I focused on the 2011 plan because that is the only one that CBO has evaluated in terms of total, not just federal, cost.

The difference in the new version of the Ryan plan is that traditional Medicare would coexist with private plans. To suggest that this would change everything is to make an odd argument: Moving entirely to private competition would not generate big savings, but moving partially would."

The Morning Plum: Romney and Ryan muddy the Medicare waters
Great read!
Greg Sargent goes over the various back and forth blows from the Obama and Romney campaign. Both campaigns think they will carry the medicare message. However, Democrats may need to explain whats really going on here between both campaigns' plans for Medicare:

"The difference is not over whether to do something about Medicare over the long haul; it’s over how to do it. The true nature of this difference is what Romney’s strategy is designed to obscure" (emphasis mine)

Paul Ryan and the Problem With Competitive Bidding

"Private corporations all rely on competitive bidding, and it just hasn't done much to hold down costs. That's because the real source of America's high medical costs is the fact that we simply pay more than other countries for everything we get: more for doctors, more for procedures, more for hospital stays, more for drugs, and — yes — more for insurance. If you really want to hold down costs, you have to hold down costs at the source, and Paul Ryan's Medicare plan has no mechanisms for doing this. It relies solely on competitive bidding, and there's very little chance that this alone can keep Medicare costs from outpacing his "fallback" growth cap. It's a near certainty that his growth cap will be the real mechanism for reining in costs."

PolitiFact: Do Mitt Romney and Paul Ryan want to turn Medicare into a voucher program?
After bitching about the 2011 lie of the year, democrats are finally getting it together and making accurate statements about Ryan's Medicare plan:

We agree that in the world of policy wonks, there are distinctions between "vouchers" and "premium support," having to do with the type of inflation adjustment used and the degree of marketplace regulation imposed. Compared with his original plan, Ryan’s most recent plan does move closer to fitting the definition of pure premium support. But substantively, it’s still somewhere in between the two approaches.

But the Romney-Ryan approach pretty much matches the dictionary definition of "a form or check indicating a credit against future purchases or expenditures." We think that describes the general way Ryan's plan would work. For a political discussion aimed at voters rather than policy wonks, we think Obama’s use of the term "voucher" is close enough to earn it a rating of Mostly True. (emphasis mine)

David Frum: Paul Ryan Declares Generational War
Paul Ryan's criticism of Obamacare and the $700 billion in Medicare savings essentially amounts to a generational war:

"The talking point isn't even about changing Medicare, its about keeping the entitlements for the old, and not spending any of that money on the young. You could title this speech: Entitlements for Me, Not for Thee. Spending money on 'deserving' old people is good, spending on anyone else is a waste."

PolitiFact: Ryan's plan includes $700 billion in Medicare "cuts," says Stephanie Cutter

"Cutter said that Romney attacked Obama for cutting $700 billion out of Medicare, but "Paul Ryan protected those cuts in his budget." Again, with this item we are not addressing whether they are cuts, but simply whether she is correctly characterizing Ryan's plan.

Cutter is correct that the Ryan budget plan included cost savings that were part of the future health care law. Just recently, the Romney campaign backed away from that play, saying Romney’s plan would restore the spending that the health law is set to curtail, such as extra funding for private insurers under the Medicare Advantage plan." (emphasis mine)

As PolitiFact has noted before, these are not technically cuts. The reason they assigned a "true" rating is because it is of no consequence to cutter's speech. Cutter is essentially saying that what people are protesting in the Obama law, these "cuts," are preserved in the Ryan plan. So they should not criticize Obama for it without also criticizing Ryan.

Romney's Health Care Plan Freaks Out Utah Republicans

"When asked what they thought should be done to fix health care, Love and McCain offered up an unintentional endorsement of some of the very laws that they've been campaigning angrily against for the past two years, Obamacare and the federal stimulus package." (emphasis mine)

Mitt Romney: Paul Ryan Medicare Plan And Mine Are The Same, 'If Not Identical' 

A possible unintended consequence of the Ryan plan?

Update 8/21/12:

David Cutler: Hey Republicans! Stop Misusing My Medicare Study!
Supporters for the Ryan/Romney Medicare plan misrepresent a study on the effects of premium support healthcare systems.

David Brooks Badly Misrepresents the Romney/Ryan Medicare Plan
 
Update 8/26/12:

Ezra Klein: The problem with Romney’s Medicare chart: It’s not true

"You could take one of two views on this. You could say that Ryan’s and Obama’s plans put Medicare on a sustainable fiscal path, while Romney’s doesn’t, because that’s pretty much what the CBO will say, and they’re the folks who judge these things. Or you could say that none of the plans really make Medicare solvent — that they’re all just theory and prayer. What you can’t say is that Romney has released a plan that makes Medicare solvent." (emphasis mine)

The Roundup: On Ryan Edition

 
How Paul Ryan captured the G.O.P.¹
 Paul Ryan, the man partly responsible for the GOP losses in 2006 and 2008, as well as the loss of popularity the GOP has also seen since the beginning of 2011, may be one of the most relevant figures in the GOP today. He is the man who has led the push for conservatives to switch from Friedman to Hayek. And if you are fimiliar with his history, you may begin to doubt the permanency of his recent decision to not try and dismantle traditional medicare.

David Frum: Why Ryan?

"This election—which Romney once intended to make a referendum on Obama's record—will now become a referendum on Paul Ryan's bold budget ideas. Why would Romney make such a choice and take such a risk?"

David Frum: Only Ryan Could Sell Ryan’s Budget ‎

"Paul Ryan, as documented with hair-pulling frustration by Krugman, Chait and others, has successfully managed to play down the radicalism of his proposals in the eyes of the media. He comes across as a serious, pragmatic, decent, wonkish type rather than the Randian class warrior he is, which demonstrates serious political skill. Obviously I'd like to believe that this charade would be unsustainable under the glare of a total war campaign, but if he can pull the same trick on America that he's pulled on the Beltway, this could end up being very smart."

David Frum: What’s Right and Wrong in the Ryan Plan
David Frum's thoughts on the Ryan plan in this article mirror my own:

"Paul Ryan is wrong, wrong, wrong to imagine that a society can deal with rising social-insurance costs while entirely exempting Republican-voting age cohorts and without asking for anything from its richest people—in fact while simultaneously delivering those people a huge tax cut.

Medicare reform will mean large sacrifices for younger and poorer Americans, exactly the people who have lost most in this recession and the slow-growth years before the recession.

A president cannot ask that generation to bear all the remaining burden of sacrifice alone. You can't lead the battle for deficit reduction from the rear. Yet that is exactly the proposition embedded in the Ryan plan. That's bad politics—and worse governance."

Michael Tomasky on Romney’s Stunning, Terrible Choice of Ryan for VP

"If the Democrats handle this situation properly, that's where this ticket will end up too, and then the rest of us—the people who don't want federal policy to be based on Atlas Shrugged—can finally and fully press the case to the right that America is not behind you, and please grow up."

Romney seeks distance from Ryan's budget plans
Don't be surprised if the Ryan pick doesn't quickly materialize in a downward spiral for Romney in the polls. People just don't know much about Ryan. But by the time this campaign is over, they will and it's not gunna look good.

"A recent CNN/ORC international poll showed a majority of voters had no opinion of the congressman. Nearly 40 percent had never heard of him and 16 percent weren't sure what they thought of him."

Paul Ryan plan unpopular, polls show
Granted this is based on Ryan's 2011 plan, not his 2012 plan. But then again, does anyone really believe this Ayn-Rand-loving right winger really plans on preserving traditional medicare as an option if he were to get elected?


Paul Krugman: The Ryan Role¹

"What Ryan is good at is exploiting the willful gullibility of the Beltway media, using a soft-focus style to play into their desire to have a conservative wonk they can say nice things about. And apparently the trick still works."

FiveThirtyEight: A Risky Rationale Behind Romney’s Choice of Ryan¹

"Mr. Ryan is the most conservative Republican member of Congress to be picked for the vice-presidential slot since at least 1900. He is also more conservative than any Democratic nominee was liberal, meaning that he is the furthest from the center."

...

"Mr. Ryan’s controversial budget, which polls poorly, will obviously get much more attention than it had previously. The fate of the presidential race and the fate of Congressional races may become more closely tied together. Mr. Obama will no longer have to stretch to evoke the specter of Congress and its 15 percent approval rating. With Mr. Ryan on the opposing ticket, he will be running against a flesh-and-blood embodiment of it.

Taking risks like these is not what you do if you think you have a winning hand already. But Mr. Romney, the turnaround artist, decided that he needed to turn around his own campaign." (emphasis mine)

Barack Obama's 'Life of Julia' says Mitt Romney would replace Medicare with ‘nothing but a voucher’¹

But the bipartisan plan Romney supports includes traditional Medicare among seniors’ options for purchase on a Medicare exchange. It also requires other plans to offer benefits of at least the same value. Finally, it includes a more generous cap on spending growth than the original Ryan plan. If all plans rose in cost, hitting a proposed spending cap, the bipartisan plan says the government would turn to providers and other sources of savings. (emphasis mine)

Mitt Romney's Astoundingly Cynical Medicare Strategy¹

"Yes, the Affordable Care Act includes substantial cuts to Medicare. But Ryan's own budget, which nearly every House Republican voted to pass and which Romney has said he would sign as president, leaves those cuts in place and uses them to finance other priorities. In other words, the Romney campaign is attacking a proposal that Romney and his allies endorse." (emphasis mine)

BTW, these "cuts" are just "an attempt to curtail future Medicare spending". Medicare spending will still increase, but slower than it would have.

Romney did Obama a huge favor¹

"This year, an incumbent even more embattled than George H.W. Bush has his own preferred election theme. He doesn't want to debate his own record, which is pretty dismal. He wants to debate the record of the congressional Republicans electe d in 2010, a bunch radically less popular even than the president himself.

You'd imagine that Romney's job was to refuse the Democratic invitation, to choose his own ground for the election, and to keep his distance from the congressional GOP. You'd imagine, but you'd be wrong.

Romney has instead chosen to bolt himself to the House Republicans."

David Frum also has a great description of why we are struggling so hard to get out of this recession. Spoiler: It's housing, stupid!

 Paul Ryan's V.P. Nomination Kills Off Moderate Republicanism For Good¹

"The only argument that the GOP establishment can muster against the Ryan budget is that if it were perchance to be implemented, and the American people suddenly realized what its cutbacks in government would mean for them personally, the b acklash against the Republicans would be so cataclysmic that the GOP’s 1964 election wipeout under Barry Goldwater would seem a mere hiccup. Such pragmatic calculations seem small-minded and contemptible to Tea Partiers, who have in effect adopted the 1960s left-wing radical slogan: “Dare to struggle, dare to win.”"

12 Things You Should Know About Paul Ryan

PolitiFact: Fact-checking Paul Ryan, vice presidential candidate²

"House Budget Committee Chairman Paul Ryan, R-Wis., Mitt Romney’s vice presidential pick, has been a regular on the Truth-O-Meter.

So have statements by others -- often criticism from Democrats -- about his budget plans and proposals to revamp Medicare and Social Security."

The AP provides a fairly comprehensive fact check of the many claims made by Romney and Ryan during Ryan's introduction as VP.²

Do Americans' concerns match up with Paul Ryan's?²
Gallup puts it well

"We now have a new high in those saying government's doing too much: 61 percent. And in general, government has a terrible image -- 10 percent job approval for Congress this week, that's the lowest tied for the lowest in history, a new number. So when you say government, people think 'bad,' negatively. However, when you get into a lot of the specifics, all of a sudden people pull back and say, 'Wait a minute, I don't want government to cut back on that or this,' and that's the dilemma that all these politicians face."

¹ Updated 8-13-12 
² Updated 8-15-12