News Roundup: DeLay Indictment, Medicare Rx Program, Social Security, Katrina

9-30-05, 9:20 am



Group Calls for DeLay’s Resignation


An e-mail notice from the Campaign for America's Future this week read in part:

Tom DeLay and two of his close political associates were indicted on criminal conspiracy charges by a Texas Grand Jury earlier today. This is the same Tom DeLay who eleven years ago this week signed the so-called Contract with America and pledged to end Congress' 'cycle of scandal and disgrace.'

The indictment against Tom DeLay has immediate political consequences _ he has just stepped down as House Majority Leader. This is a tremendous victory for everyone fighting to make Congress work again for the American people. But, it does not go far enough. Tom DeLay is the personification of the corrupt, pay-to-play politics that is the hallmark of today's Republican-controlled Congress. To return honor and dignity to the legislative branch, and restore Congress' accountability to the American people, Tom DeLay must resign from Congress.

Congress is no place for scoundrels like DeLay who blatantly abuse their power for personal and corporate gain. He and his co-conspirators in Congress have consistently pushed measures that benefit the wealthy elite at the expense of the American people. It's time to clear the air of corruption that Tom DeLay has brought into the House of Representatives. Please write your Representative and demand that they call for Tom DeLay's resignation from Congress.



Report: Bush/Republican Medicare Rx Program Costs More than VA Drug Program


A new report released this week by the consumer health organization Families USA found that seniors using Medicare drug discount cards are paying considerably more for 49 of the top-50 most frequently prescribed drugs than they would through the Department of Veterans Affairs (VA). The median price difference for the 50 drugs was $220.44.

The report found that, for half of the top-50 drugs, the lowest Medicare discount card price is at least 58.2 percent higher than the best available VA price.

This information comes at a time when concern about the expense of the new Medicare drug program has reopened public debate over a key controversial feature of the legislation that created the new program prohibits Medicare from bargaining for cheaper drug prices like the VA already does.

'The best way to make medicines affordable for seniors is to allow Medicare to negotiate for better prices directly with drug companies, the way the VA successfully does,' said Ron Pollack, Executive Director of Families USA. 'The continued prohibition against such bargaining will not only hurt seniors, but it will also fleece the American taxpayer.'

Latest Social Security Bill Benefits Privatizers, not Seniors


S. 1750, recently introduced by troubled Sen. Rick Santorum (R-PA), instructs the Treasury Department to provide a written guarantee to individuals born before 1950 promising they will receive their full amount of Social Security benefits. Privatizers are hoping this bill will 'resolve uncertainty' among seniors, who are opposed to private accounts by a large margin. However, current law already guarantees that anyone who has paid into Social Security will receive benefits. Additionally, this bill does nothing to prevent benefit cuts for those born before 1950, as Congress could change the law at any time.

'American seniors don't oppose private accounts just because of how they will affect them personally. They know private accounts weaken the program for their children and grandchildren too. This bill does not change that fact.' Barbara B. Kennelly, President and CEO of the non-partisan National Committee to Preserve Social Security and Medicare. 'This new legislation also doesn't change the fact that private accounts ultimately weaken Social Security by taking money out of the program, causing deep benefit cuts and massive debt,' Kennelly stated.



Katrina and Iraq War Demonstrate Misguided Priorities
Americans have an historic opportunity to examine federal spending priorities in the face of Hurricane Katrina's aftermath and the Iraq War, according to the non-partisan research group the National Priorities Project (NPP).

Data compiled by NPP shows that investment in infrastructure and disaster preparation prior to Katrina could have saved lives and money. But each year since taking office, the Bush Administration proposed significant cuts in the Army Corps of Engineers' civil works budget. The budget for the Southeast Louisiana Flood Control project has been continuously cut since 2002. Now, the economic damage across the Gulf Coast is at least $100 billion while the level of upheaval and loss for hundreds of thousands of people defies calculation.

As the predicted catastrophe unfolds, Congress considers further divestment in communities. The Republican-controlled House of Representatives has already passed a $300 million cut in the Army Corps of Engineers' civil works budget for next year. Congress also proposed to cut $35 billion over the next five years in programs serving low-income families, thousands of whom are in more desperate need than ever. While the demand for federal resources reaches unprecedented levels, the Iraq War drains billions in tax dollars. Congress has allocated $205 billion so far to wage the Iraq War through fiscal year 2005. It will cost another $70-$80 billion for every year thereafter if U.S. involvement and the situation in Iraq remain the same.

'There has rarely been a more compelling time for Americans to let their elected officials know whether they are making the right choices with their tax dollars,' said Greg Speeter, executive director of the National Priorities Project. 'We've seen all too painfully just how high the stakes are.'