Michael Barone reports from his notes on the Rove speech. I found this very interesting – Rove certainly is well-informed on a range of policy issues. Michael also has a video link to the entire speech.
A couple of excerpts – first how many times has Bush threatened a veto? 39 times?
Rove also credited free-trade agreements—14 bilateral agreements have been signed during this administration—with strengthening the economy and argued that nondefense discretionary spending has been cut for 2006. He said that 39 veto threats had resulted in spending being held down to the level the administration wanted. When challenged on this by Jeanne Cummings of the Wall Street Journal, who said that Bush had accepted spending above his mark on some bills, naming the highway/transportation bill, Rove said that Congress met the mark for the money actually laid out by the government (he said he didn’t know the precise terminology here) and that on other issues the veto threats were effective.
More good points on social security and healthcare entitlements:
Entitlements. Rove pointed out that the fiscal 2009 budget will see, for the first time in 25 years, a decrease in the surplus of Social Security revenue (FICA tax receipts) over Social Security expenditures (benefits). He admitted that Social Security personal retirement accounts would not solve the fiscal problems of the systems but said they would solve the fiscal problems of individuals, because they would increase their returns over what the system currently promises. “Why not the Pozen reform?” he asked, pointing to the proposal of Social Security Commission member Robert Pozen that would link high earners’ benefits not to increases in wages but to increases in the cost of living and then have a sliding scale so that low earners’ benefits would continue to be linked to increases in wages. This would solve 75 percent of the long-term fiscal problem, Rove said.
Healthcare finance. “Health savings accounts may be a game-changer,” he said. This parallels the argument I have made that health savings accounts might have the potential to change the health insurance sector in a way similar to that in which Section 401(k), a little noticed part of the 1978 tax bill, changed the private pension sector. He pointed out that 30 to 40 percent of those who sign up for health savings accounts insurance policies were previously uninsured. He also called for medical liability reform and improvements in health information technology.
Rove is sanguine about the elections?
The 2006 elections. Rove insists, with his usual cheeriness, that he is “sanguine” about the elections. He admits that this is a “sour time,” primarily because of the war in Iraq that “looms over” everything, but says that voters will continue to want a strong defense, victory in the war on terrorism and in Iraq, and an economic policy that is pro-growth and pro-free trade, with fiscal restraint. They will oppose Democratic obstructionism on judicial nominations and the Patriot Act, he says. “The American people are a center-right country, and they will vote for a center-right party and center-right candidates.”
Technorati Tags: Entitlements, Healthcare
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