Cutting the Deficit
Every child in America starts his or her life owing over $38,000 of the national debt.
Jack has a plan to save $430 Billion over the next ten years, without raising taxes. He would save:
- $200 Billion, by giving Medicare the ability to negotiate for bulk rate discounts on prescription drugs. In 2004 when Congress created the Medicare Part D prescription drug benefit, the pharmaceutical industry successfully lobbied for a provision that said Medicare could not negotiate for lower prices on prescription drugs like the Veterans Administration and Medicaid already do. Consequently, this sweetheart deal is estimated to protect up to $24 Billion of pharmaceutical profits every year. That is taxpayer money that could be used to lower the cost of prescription drugs for seniors and reduce the budget deficit.
- Therefore, the first piece of legislation Jack would introduce as a U.S. Senator would be to repeal the special interest sweetheart deal for the pharmaceutical industry. A report by the National Committee to Preserve Social Security and Medicare estimates this would save $200 Billion over ten years.
- $100 Billion, by reducing waste, fraud and abuse in Medicare just like he did with Medicaid here in Kentucky. The Government Accountability Office estimates there is at least $20 Billion a year of Medicare waste, fraud, and abuse. Cutting that in half could save at least $100 Billion over ten years.
- Jack has proposed creating state-level Medicare fraud task forces that would be better equipped to root out waste, fraud, and abuse because they are familiar with the provider networks and could detect billing irregularities more easily.
- $130 Billion, by closing corporate tax loopholes on overseas interest and income and shutting down offshore tax shelters. The tax code has a loophole that lets companies deduct their foreign interest and income from their U.S. taxes. This provision essentially encourages companies to invest in foreign companies and ship jobs overseas. Experts estimate shutting this loophole would save $100 billion over ten years. And it would be more effective if combined with an effort to shut down offshore tax shelters, which the Congressional Budget Office estimates could save an additional $30 billion.
- Jack would close the corporate tax loopholes and shut down offshore tax shelters to so that big corporations pay their fair share and create jobs in Kentucky, not the Cayman Islands.
Jack’s record as Attorney General demonstrates that he is the candidate voters can trust to get results when it comes saving taxpayers’ money. Jack has saved Kentucky taxpayers over $200 million by taking on big drug and oil companies.
