Christopher Shays: “It is inaccurate for two reasons. First off, recognizing that part of it is a trust fund, the Medicare Part A is a trust…”

“It is inaccurate for two reasons. First off, recognizing that part of it is a trust fund, the Medicare Part A is a trust fund and Medicare Part B is funded out of the taxes. And we tax revenues and the premium that people pay. By our saving $240 billion, half of that goes into the trust fund and the other half basically reduces the burden to the taxpayer of continuing to spend more for a program where we do not have to spend more. But the other part is that they are not tax cuts for the wealthy. The two-thirds of the tax cut that we proposed was a $500 tax cut basically, not a tax cut, well it was a tax cut, $500 tax credit per child for families making under $100,000. So if you had a family of four children, and you were making under $100,000, you would have in your payroll $2,000 more. What was the logic of that? It is not a tax cut to the wealthy; it is a tax cut to families. And if you were making $30,000 or $40,000, you may end up paying no taxes because that $2,000 reduction may eliminate all of your Federal taxes except for the Social Security tax. That was a tax cut, a tax credit for families. Not wealthy people, for families.”