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Rep. Bill Cassidy was well received by a predominately conservative group of business and community leaders, although he joked about it being a non-partisan audience.
South Central Industrial Association members welcomed the Republican congressman last Tuesday. In turn, he boosted GOP positions as candidates take aim at incumbent President Barak Obama and Capitol Hill Democrats.
“The greatest threat to our national security … is our national debt,” Cassidy said while noting that 41 percent of every dollar spent by the federal government is borrowed. The consequence, he said will fall on taxpayers if bold changes are not made.
“At the end of this year we are going to have … major things happen in terms of taxes,” Cassidy said. “The end of the Bush tax cuts, the payroll tax cuts will also expire, the death tax rate will go back up … as well as various other things.”
Cassidy warned that when existing tax cuts expire, Americans can expect to be hit with approximately $500 billion in new taxes. While Obama has said he would like to continue tax cuts for those households earning less than $250,000 annually, those earning more than that amount will begin paying a higher rate, according to the congressman.
“Republicans will say, ‘Fifty percent of those who are paying more taxes are small business owners,’” Cassidy said. “Do we want small business [owners] spending their money to hire more people or the president to use his wisdom to hire more people?”
Another tax issue of concern to Cassidy is increased estate taxes and anticipated increases. When present estate tax laws, commonly called death taxes, expire at the end of 2012, an estate valued at $1 million would be taxed at 55 percent.
Cassidy, who is a physician and medical instructor by profession, focused the bulk of his comments on health care, Medicare and Medicaid.
“One of the big things before us is, what are we going to do with the health care entitlements of Medicare and Medicaid?” Cassidy said. He told those in attendance that the reason there is not money for local projects including Morganza to the Gulf and highways from the federal level is because Medicare, Medicaid and Social Security are taking all the existing tax revenue.
Cassidy said those three assistance programs are no longer being operated as they were originally designed and have become a burden on the public – including the people who need them most.
“By 2030, 100 percent of federal tax revenue will go to Medicare, Medicaid, interest on the [federal] debt and Social Security,” Cassidy said. The congressman warned that these systems are close to going bankrupt and said they need to be redesigned to continue operating productively.
The Republican health plan, according to Cassidy, would change nothing on Medicare for individuals who are presently making use of those resources and people ages 55 and older. “If you are 54 and below it will change to what is called premium support,” he said. “You pick a plan you want. It’s your call. If you are poor, 100 percent of everything is paid for [and] if you are Warren Buffett you finally get your wish and get to pay more than everybody else. The president’s plan is not yet announced.”
Regarding Medicaid, the federal program that matches state dollars as a safety net for the poor, Cassidy said cuts during the past year came because state budgets were cannibalized to support Medicaid. “That program is bankrupting the country and states,” he said. “Under the president’s health care plan, Medicaid in Louisiana would expand 20 percent of folks in Louisiana to 40 percent. If you think we got a problem now, it is about to get worse.”
“I think that [Cassidy] has an objective view,” Terrebonne Regional Medical Center President and CEO Phyllis Peoples said. “We are waiting for November to see what the impact is going to be to all of us in health care.”
Cassidy contends that any change in the White House and Congress would mean a positive change to benefit Louisiana.
“The biggest thing that jumps out to me and should jump out at everybody, is if we are spending 41 percent of every dollar in the federal government, how is that sustainable?” Business First Bank Regional President Don Hingle said. “We need to be talking about cutting expenses instead of raising taxes. You can’t raise enough taxes to cover that. There’s no way.”
“Everything on the plate in Washington affects us all, either directly of indirectly,” Cassidy said. “I wish I could tell you, between now and November significant progress is going to be made. The fact is, between now and November in Washington nothing is going to happen.”
Cassidy is seeking a second term in Congress and appears on the Nov. 6 ballot challenged by Libertarian Rufus Holt Craig Jr. and Richard “R.P.T.” Torregano who has no party affiliation. All three candidates live in Baton Rouge.
Rep. Bill Cassidy makes comparisons between the GOP and White House positions regarding the national debt and health care while addressing the South Central Industrial Association membership meeting. Cassidy is seeking re-election to the re-drawn 6th Congressional District, which now includes parts of Lafourche and Terrebonne parishes.
