Newt Gingrich photo

Gingrich Campaign Press Release - Unlike Romney, Gingrich Offers Bold Plan to Strengthen Social Security and Medicare

November 03, 2011

Newt Gingrich is the Only Candidate Who Has Led Entitlement Reform on a National Level

Americans work their entire lives to pay for their hard-earned retirement benefits, and as Americans now enjoy longer and healthier lives than ever, these benefits must be protected and made even stronger.

Newt Gingrich rejects the idea that we can solve our budget and debt crisis by some combination of cutting benefits and raising taxes within the current framework of these two programs.

Instead, we need to think outside the box with fundamental, structural reforms that would transform and modernize these two programs, changing how they work to achieve their goals.

Newt Gingrich is the only candidate who has led entitlement reform on a national level. His landmark 1996 welfare reform legislation introduced work requirements, lowered the welfare rolls by two-thirds, and helped bring millions out of poverty.

The Gingrich plan will address the redundancies and inefficiencies in our other federal means-tested programs, and seek reforms based on the lessons and success of the 1996 reforms.

By modernizing our old fashioned, redistributive entitlement programs to tap the power of markets and local innovation, we can achieve all of the social goals of these entitlement programs far more effectively, serving seniors and the poor far better, at just a fraction of the current cost.

Just like with Romneycare, many of Governor Romney's rationing proposals for Social Security and Medicare empower big government to make decisions instead of empowering the American people. Additionally, he supports returning the payroll tax on employees from 4.2% to 6.2% in the middle of a recession.

Issue Gingrich Romney Verdict: Gingrich Plan Better
Saving and Strengthening Social Security
Choice between the traditional benefits system and the opportunity to invest in personal savings accounts
Maintain existing system with government-mandated increase in retirement age and means-testing Under the Gingrich Plan, any American who wants to enjoy the existing Social Security system will be able to do so. Gingrich also supports creating the option for personal savings investment and insurance accounts, where current workers have the choice to save or invest a portion of their earnings and enjoy the returns in retirement – which historically would be much higher than the benefits paid under traditional Social Security.
Retirement Age Do not raise the retirement age Raise the retirement age Gingrich believes there is no need to raise the current retirement age. Workers who own personal accounts will have control over how and when they retire. Americans will determine their own retirement age, with market incentives to delay it as long as possible.

The Romney Plan will raise the Washington-mandated age at which Americans can retire.

Payroll Tax Maintain current rate of 4.2% on employees until the economy recovers, with the ultimate goal of eliminating the tax
Return payroll tax on employees to 6.2% Gingrich supports a personal savings account that would eventually be expanded to finance all of the benefits now financed by the payroll tax, allowing that tax ultimately to be phased out altogether. Presently, he supports keeping the payroll tax on employees at 4.2% while the economy is still weak.

Romney supports returning the payroll tax on employees to 6.2%.

Improving Access, Care and Options for America's Seniors Choice between the traditional system or opportunity to purchase private insurance with premium support Introduce means-testing and raise eligibility age, and give a choice between the traditional system or opportunity to purchase private insurance with premium support.
Under the Gingrich Plan, any American who wants to enjoy the existing Medicare system will be able to do so. Americans can also opt to transition to a more personalized system in the private sector with greater options for better care, where they would receive premium support to purchase private insurance.

The Romney plan will also give Americans a choice between traditional Medicare and private accounts. However, this plan will will make Americans wait longer to be eligible for Medicare, and will introduce rationing of care, via means testing, for upper- and middle-income Americans who have paid payroll taxes their entire lives.

Means-testing Medicare and Social Security
No
Yes The Gingrich plan rejects the notion that cutting benefits is the only way to preserve Medicare and Social Security, and will not support means testing that will pare back Americans' hard earned benefits.

Instead of creating new wealth and savings by tapping the market power of private insurance and personal accounts, Romney tinkers with the existing system by introducing rationing through means testing. Studies of Social Security proposals similar to Romney's would see the benefits for average income Americans being reduced by over 15% by 2050.

Making Medicaid More Effective and Efficient Block grant Medicaid to the states Block grant Medicaid to the states
Newt Gingrich is the only candidate who has led on a federal level, and this includes the only successful entitlement reform in history. The Gingrich Plan will build on the success of his 1996 welfare reforms, which block granted welfare funds to the states, and devolve decision-making powers to the states. A Medicare block grant system will free states to innovate and create Medicaid programs best suited for them.
Other Means-Tested Entitlements Build on 1996 welfare reform and block grant to states Unclear
The Gingrich plan will first seek to streamline these plans to eliminate redundancies, then it will block grant all of these programs to the states, which could save up to $3.25 trillion for the federal government and $1.4 trillion for the states. Under a block grant program, each state can focus on designing assistance programs to low-income families that are best tailored to local needs.

Click here for a side-by-side comparison of Gingrich and Romney's tax plans.

Click here for a side-by-side comparison of Gingrich and Romney's manufacturing plans.

Click here for a side-by-side comparions of Gingrich and Romney's reforms for the Federal Reserve.

Newt Gingrich, Gingrich Campaign Press Release - Unlike Romney, Gingrich Offers Bold Plan to Strengthen Social Security and Medicare Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/298429

Simple Search of Our Archives