Plouffe: Ryan plan effectively DOA, Bush tax cuts for wealthy must end #P2 #TCOT

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David Plouffe on Meet the Press (April 10, 2011)
 

Yesterday on Meet the Press, David Plouffe previewed President Obama's upcoming speech on long-term fiscal policy.

Among the key points: Plouffe reiterated Obama's support for ending the Bush tax cuts on the wealthy; he said the Ryan fiscal plan is dead on arrival because it cuts key priorities and would increase health care costs to seniors down the line; that Obama's approach to reducing health care costs would be to reform the system rather than cut benefits; and that while he was willing to discuss ways to strengthen Social Security, he did not believe Social Security was a long-term driver of the nation's debt.

I've collected some of his key quotes below. The full transcript is here.

On the Ryan plan:

The Congressional Republican plan, for instance, would--projections show--would give the average millionaire a $200,000 tax cut, while asking more of the middle class.  The average senior down the road would pay $6,000 more for health care.  It cuts our energy investments at a time we're dealing with high gas prices by 70 percent.  So we're obviously not going to sign on with that approach. ... It may pass the House. It's not going to become law.  I--and I don't think the American people are going to sign up for something that puts most of the burden on the middle class, people trying to go to college, on senior citizens, while not just asking nothing of the wealthy, giving them at least a $200,000 tax cut.  So that's a choice you're making.

On ending Bush tax cuts for wealthy:

He has said he believes taxes on the higher income, people over $250,000, should eventually go up. ... I think the president's goal, and he's been clear about this, is to protect the middle class as we move forward here.  So people like him, as he'll say, who've been very fortunate in life, have the ability to pay a little bit more.  Now, under the Republican Congressional plan, people over $250,000 get over a trillion in tax relief.  So this is the important thing, you're making a choice.  You're asking seniors and the middle class to pay more.  You wouldn't be having to do that if you weren't giving the very, very wealthiest in this country just enormous tax relief.

On Medicare and Medicaid:

So we've had a lot of savings in health care, we have to do more. So you're going to have to look at Medicare and Medicaid and see what kind of savings you can get.  First, squeezing them out of the system before you squeeze seniors.

On Social Security:

On Social Security, what he said is that is not a driver right now of significant costs, but in the process of sitting down and talking about our spending and our programs, if there can be a discussion about how to strengthen Social Security in the future, he's eager to have that discussion.

On that last item, The Hill has a report claiming that there is a divide within the administration over Social Security, with Plouffe and the political team opposing cuts to Social Security, but Tim Geithner and Jason Furman supporting reductions. So far, the article says, Plouffe's side is winning. Obviously, it would be an epic disaster if Obama did agree to slash Social Security benefits, but the furthest Obama has gone in that direction is saying he'd be willing to talk with Republicans about strengthening the program.