Crystal Coast Tea Party

Dear Friend,

Dear Friend,

     September 26, 2011

Dear Friend,

Dear Friend [Eric B.],

May 19, 2011

Dear Friend,

Thank you for your interest in my office.  I wanted to take this opportunity to update you on some of the major accomplishments of the past two years, and to share with you my goals for the current session of Congress.

National Debt

I have worked with my colleagues across the aisle to combat what the Chairman of the Joint Chiefs of Staff, Admiral Mike Mullen, declared to be the greatest threat to our national security: our national debt.  The national debt has been piling up to dangerous levels over the past decade, due in large part to two wars, two tax cuts, and an expensive prescription drug program. On top of that, the severe economic recession that began in 2007 greatly reduced federal revenues and led to higher deficit spending as Congress took steps to stimulate the economy and unfreeze credit markets. I understand that our country cannot sustain continued deficit spending far into the future.  Addressing this looming crisis should be among our highest priorities.

I believe it is critical that we address our fiscal challenges head on, and I was among a group of senators who advocated for the creation of the National Commission on Fiscal Responsibility and Reform, which was announced by President Obama on February 18, 2010.

The 18-member Commission was co-chaired by former White House Chief of Staff Erskine Bowles of North Carolina, and former Republican Senator Alan Simpson of Wyoming. The group was tasked with producing recommendations for reducing the deficit, and its leaders showed tremendous leadership throughout the process. On December 1, 2010, the Commission published its final report, which you can read here: http://www.fiscalcommission.gov/.

While I certainly understand the concerns that have been expressed with some of the recommendations in the Commission’s report, and I do not agree with everything in it, I believe that the commissioners showed remarkable courage by addressing a wide range of issues, from tax policy to health care costs. Most importantly, their report will help keep the process of addressing our fiscal outlook moving forward. On December 3rd, I was one of 14 senators who sent a letter to the White House and the bipartisan congressional leadership, urging them to address our pressing fiscal challenges by considering the Commission’s report.

Jobs

Job creation remains my number one priority. In March 2010, Congress passed the Hiring Incentives to Restore Employment Act, more commonly known as the HIRE Act. The legislation provides tax credits to employers that hire and retain employees who have been out of work for at least 60 days and eases the tax burden on small businesses that purchase certain capital equipment. Increasing the general business tax credit and extending certain HIRE Act provisions will encourage employers to create jobs and hire unemployed Americans.

I believe that small businesses are the backbone of the North Carolina economy. Small firms represent more than 98 percent of North Carolina employers and are responsible for nearly half the jobs in our state. The Small Business Jobs Act (H.R. 5297) was signed into law in September 2010. This important legislation included an amendment I cosponsored that will create a $30 billion small business lending fund for community banks.

I supported the bipartisan Small Business Jobs Act because it will help small businesses create more than 50,000 new jobs nationwide. Additionally, this legislation will not add to our nation’s deficit. As a member of the Senate Committee on Small Business and Entrepreneurship, I will continue to be a strong advocate for North Carolina’s small businesses.

Wall Street Reform

The financial crisis also exposed critical gaps and weaknesses in our financial regulatory system. Massive risks in financial markets went undetected by both regulators and market participants. Even if those risks had been exposed earlier, regulators lacked the power to mount an effective response. These systematic failures caused a dramatic loss of confidence in our financial institutions and helped to cause the worst downturn since the Great Depression. Congress had to take action to ensure that American taxpayers will never again have to bail out our financial institutions and that these institutions treat consumers fairly and responsibly.

The Restoring American Financial Stability Act of 2010 was enacted on July 21st to provide better oversight in the financial sector. The bill reforms the current financial regulatory structure into a more stable and transparent system that will protect consumers, provide clear and fair regulations for financial firms, and restore confidence in the financial markets.

I supported this legislation because it embodies common sense financial reform that protects consumers, levels the playing field for community banks and provides fair and clear regulations for all financial institutions. North Carolina is a leader in the banking industry, and both our state’s banks and its banking customers will benefit from the financial reforms found in the law. The law will close gaps and eradicate inefficiencies in America’s current regulatory structure. I am proud to represent North Carolina in supporting legislation that works to ensure that American taxpayers will never again have to bear the cost of a financial crisis.

Supporting our troops

North Carolina is the most military-friendly state in the country. Approximately 35 percent of North Carolinians serve in the military, have an immediate family member who serves, or is a veteran. There are close to 120,000 active duty military personnel stationed in North Carolina. There are approximately 25,000 National Guardsman and Reservists that live in all 100 counties of North Carolina.

During my past two years in the United States Senate, I have visited our troops in Afghanistan three times. Many of the troops deployed in Afghanistan are from North Carolina and come from North Carolina military installations. They are leading the charge against terrorism abroad to protect us here at home. I continue to be impressed by the incredible job our military is doing to disrupt, dismantle and defeat al-Qaeda in Afghanistan. These brave men and women are doing an extremely difficult job under trying circumstances and need our support now more than ever. I pledge to continue supporting our troops who make the greatest sacrifice to preserve and defend our freedom.

Behind every Soldier, Sailor, Airman and Marine there is a family at home that also deserves our support. As a founding member of the Military Family Caucus I strongly support giving the necessary resources to military family support programs and pledge to continue doing so in the 112th Congress.

There are also nearly 800,000 veterans who live in North Carolina.

I have always been a strong supporter of our nation’s veterans. As a member of the Senate Armed Services Committee, I am working to ensure that our military men and women have the support they need as they as they transition from the military to civilian life. Furthermore, it is my belief that our veterans deserve stability and certainty in their benefits. That is why I cosponsored the Veterans Health Care Budget Reform and Transparency Act of 2009. The bill requires, beginning in fiscal year 2011, that Congress appropriate funding for the VA two years in advance, eliminating many of the delays and much of the uncertainty created by partisan budget fights in Washington, D.C.  The Department of Veterans Affairs and VA facilities across the country will be able to more effectively conduct business and planning, resulting in more efficient and effective services for our veterans.

The 111th Session of Congress was certainly eventful.  But we have to keep moving forward.  I am excited to continue working in a bipartisan manner on legislative priorities that will directly affect the people of North Carolina.

I will continue to focus on creating jobs in North Carolina. In January of this year it was announced that North Carolina is one of the first two states in the nation to receive funds from a new initiative in the Small Business Jobs Act. The funds will strengthen state programs that leverage private lending for small businesses and manufacturers. The North Carolina District of the Small Business Administration has already approved 414 loans for $198.2 million during the first three months of fiscal year 2011. This is a 37 percent increase in U.S. Small Business Administration loans directed to North Carolina businesses over the first quarter of 2010.

I also recently became a member of the Senate Banking Committee. As a member of the committee, I will focus on encouraging the availability of capital to businesses, which will, in turn, help create jobs; ensuring access to safe and affordable credit for families; and making sure our country’s mortgage system is both robust and stable so that hard-working families are able to own their own homes.

I will continue to support those who serve in our military. North Carolina troops are leading the charge against terrorism in Afghanistan. I have visited troops on the ground in Afghanistan, Iraq, and Kuwait and met with military personnel in Pakistan. I will continue to support those who make the greatest sacrifice for our country. As a founding member of the Military Family Caucus I strongly support giving the necessary resources to military family support programs and pledge to continue doing so in the 112th Congress.

I am deeply committed to keeping our promises to our veterans. I will continue working to ensure they receive the care and support they deserve. I strongly oppose cutting existing benefits for our country’s soldiers and veterans, and their families, who have risked everything for our country.

During my time in Congress I pledge to continue working to represent North Carolinians to the best of my ability. I encourage you to visit my website, www.hagan.senate.gov, to learn more about my legislative priorities.

Thank you for contacting me regarding the extension of unemployment insurance benefits.  I greatly appreciate hearing your thoughts on this important issue.

On December 17, 2010, the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 was signed into law by President Obama. The bill extends the tax rates first enacted in 2001 and 2003 for all individual income tax brackets for two years, in addition to extending a number of other federal tax cuts and credits. These extensions include the Earned Income Tax Credit and the Child Tax Credit, the Alternative Minimum Tax exemption, marriage penalty relief, and the American Opportunity Tax Credit. The bill also extends the tax rate on dividends and long-term capital gains income, and sets the estate and gift tax exemption at $5 million per person with a top tax rate of 35 percent.

The legislation also reauthorizes the enhanced unemployment benefits program for 13 months. Without the passage of this provision over 230,000 North Carolina families would have been at serious risk of seeing their unemployment benefits expire.

I did not support this overall bill because it will raise our national debt by $858 billion without any long-term plan to address our national deficit. I believe it is time for Congress to tighten its belt, like American families must do daily.  However, I do support the extension of enhanced unemployment insurance programs during these difficult economic times. During Senate consideration of the bill, I supported an amendment sponsored by Senator Charles Schumer (D-NY) that would have permanently extended income tax cuts for middle class Americans, while allowing the tax cuts for people making over $1 million per year to expire.  This amendment also included the provision extending enhanced unemployment benefits.

As you know, families all across North Carolina are facing a difficult time making ends meet. I look forward to continuing my work during the 112th Congress to improve our economy and get more Americans back to work.

Thank you for contacting me regarding the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act. I appreciate hearing your thoughts on this important issue. I apologize for my delayed response.

Since the start of the health reform debate over two years ago, I have carefully examined how this legislation will impact our state. I have listened to the personal stories and concerns of constituents and have been extremely focused on working to ensure that our health care system works for every North Carolina family. In these last two years, I have received hundreds of thousands of letters, emails, and telephone calls from North Carolinians, and I truly appreciated hearing your views on many of the issues discussed.

In March 2010, the Patient Protection and Affordable Care Act (PPACA) and the Health Care and Education Reconciliation Act became law. Currently, there is a lot of discussion about repealing this legislation. Throughout the health reform debate, I consistently heard stories from North Carolinians who were denied health insurance because they had a “preexisting condition,” or had been dropped from their insurance plans once they became sick. Repealing this legislation would only create countless more stories from people denied coverage.  Through its various provisions, health reform will help an estimated 32 million people that previously were without health insurance to secure medical coverage. A 2009 study in the American Journal of Public Health found 45,000 people a year died because they lacked health insurance. Quite simply, I believe North Carolina’s families deserve better than this.

In addition, our current health care spending is simply unsustainable. Each year, costs associated with our current health care system increase. Ten years ago, North Carolinians paid $6,000 in annual family premiums. Today those premiums cost more than $12,000. With these reforms, we will reduce health care costs for families, seniors, and small businesses, not just in the next few years, but also for the long term.

Another important consideration in the discussion of repealing health reform is the cost to our federal deficit. In January 2011, the nonpartisan Congressional Budget Office (CBO) estimated that repealing the health care overhaul would increase the deficit by a total of $230 billion over 10 years. Our country cannot sustain continued deficit spending far into the future and I am working to enact a number of policies that will help address our nation’s deficit and debt.

Although the various provisions in this historic legislation will be implemented over time, many critical protections have already gone into effect in the last year. These provisions have expanded access to high quality, accessible, and affordable health insurance for thousands of North Carolinians. I would like to bring your attention to several of these provisions.

Starting on September 23, 2010, the new law ended some of the worst insurance company abuses and provided important new benefits for you and your family. First, the new law prohibits insurance companies from refusing coverage to or limiting the benefits of children (up to age 19) because of a preexisting medical condition. This prohibition applies to all health plans offered by employers and when an individual purchases a new policy. In 2014, discriminating against all individuals who have a preexisting condition will be prohibited. Second, the law prohibits all insurance plans from putting lifetime caps on the dollar amount that they will spend on benefits. In the past, patients with cancer or other chronic diseases ran the risk of hitting a lifetime cap and losing access to care. The law also restricts most insurance companies’ use of low annual dollar limits on benefits. In 2014, annual limits will be eliminated. Third, the law prohibits all insurance plans from canceling your coverage because of an unintentional mistake on an application.

Also beginning on September 23, 2010, if your plan covers children, you can now add or keep your children on your health insurance policy until they turn 26 years old. Prior to health reform, insurance plans could remove enrolled children — usually at age 19, sometimes older for full-time students. By allowing children to stay on their parents’ plan, health reform makes it easier and more affordable for young adults to get health insurance coverage. If health reform legislation were repealed, an estimated 37,300 young adults in North Carolina would lose their insurance coverage through their parents’ health plans.

On July 1, 2010, a new Preexisting Condition Insurance Plan program went into effect. This program offers uninsured individuals with preexisting conditions coverage in special state-based “pools” at an affordable rate. Prior to health reform, many people with illnesses or disabilities were unable to obtain private health insurance or the coverage offered to them was so costly that they could not afford it. For more information on this program, visit www.inclusivehealth.org

Over 120,235 North Carolina small businesses are also now eligible for a small business tax credit to make premiums more affordable. This small business tax credit gives small employers the ability to offer insurance to their workers. Tax credits will be provided up to 35% of the employer’s eligible premium expenses for tax years 2010-2013. Beginning in tax year 2014, employers can receive a tax credit for up to 50% of the cost of the premiums.

Effective January 1, 2014, most individuals who can afford it will be required to obtain basic health insurance coverage or pay a penalty. If affordable coverage is not available to an individual, he or she will be eligible for an exemption or will be able to utilize new tax credits to help them afford health insurance. Medicaid will also be extended to Americans with low incomes of up to $14,000 for an individual or $29,000 for a family of four in 2010 dollars. If your employer doesn’t offer insurance, you will be able to buy insurance directly in an Exchange — a new transparent and competitive insurance marketplace where individuals and small businesses can buy affordable insurance coverage.

Health reform also made needed improvements that will keep Medicare strong and solvent. Guaranteed Medicare benefits won’t change-whether beneficiaries get them through Original Medicare or a Medicare Advantage plan. Instead, beneficiaries will see new benefits and cost savings, and an increased focus on quality. Most importantly, seniors in North Carolina can more easily afford their medications. Last year, over 97,000 North Carolina seniors who hit the prescription drug “donut hole” received a $250 rebate check. The donut hole will be incrementally closed over the next several years until it is completely closed by 2020. Beginning this year, beneficiaries who reach the coverage gap will receive a 50% discount when buying Part D-covered brand-name prescription drugs. In addition, the 1.5 million Medicare beneficiaries in North Carolina are now eligible for an annual wellness visit with their doctor without cost-sharing or out-of-pocket payments.  This wellness visit includes free preventive care services like colorectal cancer screening and mammograms.

Like you, I am concerned about rising health insurance premiums, which is one of the many reasons I supported health care reform. Health care reform includes new resources and authorities to crack down on unjustified rate hikes. Today, 46 states, including North Carolina, are using resources under the new reform law to pass or strengthen rate review laws, which will help to keep rates low. This year, the law requires insurance companies to publicly justify, on their websites, any unreasonable premium increases.

If health reform is repealed, all of these protections would be taken away from North Carolinians and insurance companies would be put back in control over your health care – discriminating against individuals with preexisting conditions and canceling coverage when people get sick. It would also allow insurance premiums to continue to skyrocket – forcing many families to choose between purchasing food and paying for a place to live or being able to purchase necessary health care. This would be bad for North Carolinians, bad for business, and bad for our economy.

So much information is circulating about health care reform, and sorting through it can be overwhelming and frustrating. I encourage you to visit my website, www.hagan.senate.gov, where I have factual information about what the law does and what it means to you and your family. Other useful information about health care reform can be found at http://www.healthcare.gov. Finally, do not hesitate to call my office if you have a specific question about the health care reform law.

Thank you for contacting me with your concerns about congressionally directed spending items in appropriations bills, which are more commonly known as earmarks. I share your concerns about using taxpayer dollars wisely and the need to rein in our national debt as soon as we possibly can.

As you probably know, earmarks are project-based requests that usually benefit municipalities, universities and community-based organizations. In 2007, Congress instituted strict reforms in both the Senate and House of Representatives that brought more transparency to the appropriations process. Since that time, Congress has reduced the number of earmarks by more than 50 percent. Senators making project requests were required to post them publicly on their Web sites, including the name and location of the intended recipient, the amount requested, and the purpose of the project. Funding for these requests is not guaranteed; they must be reviewed and approved by both the Appropriations Committee and the full Senate.

Given the size of our national debt and the urgent need to reduce it, both Republicans and Democrats have recognized the need to rein in federal spending, including earmarks. At the end of the 111th Congress, Senate Appropriations Committee Chairman Daniel Inouye pledged to forego earmark requests for two years, which the National Commission on Fiscal Responsibility and Reform recommended.

The Commission showed tremendous leadership and produced a set of bipartisan recommendations to help us get the national debt under control. To read its final report, which was released on December 1, 2010, please visit http://www.fiscalcommission.gov/. On December 3, 2010, I was one of 14 senators who sent a letter to the White House and the bipartisan congressional leadership, urging them to address our pressing fiscal challenges by considering the Commission’s report.

As Congress considers deficit-reduction measures and budget proposals for fiscal years 2011 and 2012, I will certainly keep your thoughts about earmarks and federal spending in mind. I look forward to working with my colleagues in a bipartisan fashion to put our fiscal house back in order.

Thank you for contacting me regarding federal spending and the national debt. I share your concerns about the need to encourage fiscal responsibility and use taxpayer dollars wisely.

Our nation’s debt has been accumulating dangerously over the last decade, primarily as a result of not paying for two wars, two tax cuts, and an expensive prescription drug program. On top of that, the severe economic recession that began in 2007 led to lower tax revenues and higher deficit spending as Congress took steps to unfreeze credit markets and revive the economy. All of these factors combined to put us on a fiscally unsustainable path that must be rectified. I understand that our country cannot continue deficit spending far into the future and I am working to enact a number of policies that will help address our nation’s deficit and debt.

During the 111^th Congress, I voted for an amendment to H.J. Res. 45 to reinstate the budget principle known as “pay-as-you-go,” which requires that legislation increasing the deficit be offset by measures that reduce the deficit by an equal amount. It will help ensure that we do not burden future generations with the bill of our policies today. That amendment was agreed to by a vote of 60-39, and I believe it is a good start to controlling deficit spending.

In an effort to strengthen the pay-as-you-go budget principle and reduce the deficit, I have supported numerous bipartisan amendments to establish a five-year cap on discretionary spending. Discretionary spending caps have a proven track record of controlling government spending and reducing the deficit. In the 1990s, both discretionary spending caps and pay-as-you-go policies were in place under bipartisan agreements, and produced four balanced budgets and budget surpluses from 1998-2001. The five-year cap on non-security discretionary spending in President Obama’s 2012 budget is a good start, but we must take a comprehensive approach to deficit reduction that includes entitlement spending and tax reform.

In addition, I also supported a proposal offered by Senators Kent Conrad (D-ND) and Judd Gregg (R-NH) to create a bipartisan commission to address our long-term deficits. While that proposal did not receive the 60 votes required to pass, I was encouraged when President Obama announced plans for a similar commission co-chaired by former White House Chief of Staff Erskine Bowles, of North Carolina, and former Senate Republican leader Alan Simpson.

I was among the group of senators who advocated for the creation of the National Commission on Fiscal Responsibility and Reform, which President Obama created on February 18, 2010. The 18-member Commission was tasked with producing recommendations for reducing the deficit, and its leaders showed tremendous leadership throughout the process. On December 1, 2010, the Commission published its final report, which you can read here: http://www.fiscalcommission.gov/.

The Commission produced a set of bipartisan recommendations to help us get the national debt under control. Although a majority of commissioners supported the final report, it did not receive enough support to trigger automatic consideration in Congress. I do not agree with everything in the report, but I believe that the commissioners showed tremendous courage by addressing a wide range of issues, from tax policy to health care costs. Most importantly, their work will help keep the process of addressing our fiscal outlook moving forward. On December 3, 2010, I was one of 14 senators who sent a letter to the White House and the bipartisan congressional leadership, urging them to address our pressing fiscal challenges by considering the Commission’s report.

As Congress considers deficit-reduction measures and budget proposals for fiscal years 2011 and 2012, I will certainly keep your thoughts about federal spending in mind. I look forward to working with my colleagues in a bipartisan fashion to put our fiscal house back in order.