Say this about the 1,018-page health-care bill that House Democrats unveiled this week and that President Obama heartily endorsed: It finally reveals at least some of the price of the reckless ambitions of our current government. With huge majorities and a President in a rush to outrun the declining popularity of his agenda, Democrats are bidding to impose an unrepealable European-style welfare state in a matter of weeks. (What have I been screaming about for months? I’m not the only one seeing this!)
Mr. Obama’s February budget provided the outline, but the House bill now fills in the details. To wit, tax increases that would take U.S. rates higher even than most of Europe. Yet even those increases aren’t nearly enough to finance the $1 trillion in new spending, which itself is surely a low-ball estimate. Meanwhile, the bill would create a new government health entitlement that will kill private insurance and lead to a government-run system. (Wait, the president said we would still have private health insurance, no mandates on coverage, and no single payer system, what is going on here, can it be the Democrats are lying to us all?)
Hyperbole? That’s what people said when we warned about this last fall in "A Liberal Supermajority," but even we underestimated the ideological willfulness of today’s national Democrats. Consider only a few of the details: (The conservatives were not just saying the ‘sky is falling’ but it turns out the sky IS falling and we all will pay for it!)
A huge new income surtax. The bill’s main financing comes from another tax increase on top of the increase already scheduled for 2011 under Mr. Obama’s budget. The surtax starts at one percentage point for adjusted gross income above $350,000 in 2011, rising to two points in 2013; a 1.5 point surtax at incomes above $500,000, rising to three in 2013; and a whopping 5.4 percentage points in 2011 and beyond on incomes above $1 million. (But we were told the tax was only going to be on millionaires, what is going on here, how can those making $350k/year pay for this, they aren’t millionaires, are the Democrats starting to tax the middle class to pay for all this bloated crap?)
This would raise the top marginal federal tax rate back to roughly 47% or 48%, if you include the Medicare tax and the phase-out of certain deductions and exemptions. With the current top rate at 35%, this would be the largest rate increase outside the Great Depression or world wars. (Wow, largest increase in taxes in over 60 years, way to go mushy middle America, this means your guy is going to tax you… and this is JUST for the healthcare, add in TARP, Stimulus, Card Check (forced unionization), Cap & Trade energy subsadies, and possible Stimulus 2.0… yea sure we can spend our way out of debt, just better pray to that atheist god you all believe in that China does not call in all thise bonds, they now own America, China is the largest holder of American bonds, making it the majority debt underwriter of America, not the tax paying citizens, way to go Obama supporters, its all on YOU!)
The average U.S. top combined state-federal marginal tax rate would hit about 52%. This would be higher than in all but three (Denmark, Sweden, Belgium) of the 30 countries measured by the OECD. According to the nearby table compiled by the Heritage Foundation, taxpayers in at least five U.S. states would pay higher marginal rates even than Sweden. South Korea, which Democrats worry is stealing American jobs, would be able to grab even more as its highest rate is a far more competitive 38.5%. (And the hits just keep on coming! I came to China for personal reasons, to start a family, but have benefited in now being employed by an American company, that just re-listed as an Irish company to releave its tax burden because it is an outsourcing company employing tens of thousands of Indians, which Obama is saying is wrong and evil. Well, it isn’t, it is business and business will not tolerate all these high taxes and crapy business climates Obama is creating, get ready for a massive brain and employer drain because when this passes they will flee like rats from a sinking ship, and yes the ship is sinking.)
House Democrats say they deserve credit for being honest about the tax increases needed to fund their ambitions. But then they also claim that this surtax would raise $544 billion in new revenue over 10 years. America’s millionaires aren’t that stupid; far fewer of them will pay these rates for very long, if at all. They will find ways to shelter income, either by investing differently or simply working less. Small businesses that pay at the individual rate will shift to pay the 35% corporate rate. When the revenue doesn’t materialize, Democrats will move to soak the middle class with a European-style value-added tax. (In the bad old days of the Carter administration the Democrats tried to rais taxes in a recession, all it did was force millionaires from investing in existing companies, new companies, or creating new businesses and spending money at home, donating to charity and arts, and in local communities and put it in tax shelters, of just move overseas. I wrote about the fleeing millionaires from New Hampshire and Vermont and the tax revenue plummit they experienced, well when this goes national those with the means and oppertunity will flee the nation and take their money and tax revenue with them, benefiting their new host nations and local economies, Reganomics and trickle down economy does not work huh, well when there is no source it will surely work less, way to go Democrats!)
Phony numbers. Democrats will have to come up with something, because even the surtax puts their bill at least $300 billion short of honest financing. The public insurance "option" doesn’t even begin until 2013 and the costs are heavily weighted toward the later years, but the tax hikes start in 2011. So under Congress’s 10-year budget window, the House bill is able to pay for seven years of spending with nine years of taxes. Andy Laperriere of the ISI Group estimates the bill would add $95 billion to the deficit in 2019 alone. ($95,000,000,000.00 in 1 year alone, for 1 program… and they say cut military spending by 10%! This will dwarf the military budget when adding in Social Security, Medicare, Medicaid, and budget over runs that are a sure bet with anything the government touches, not counting on the massive inflation expected due to our reclkess printing of money and selling of bonds to the Chinese, and Russians calling for a new global currency that may devalue the dollar and cause the Chinese to call in all their bonds at once – the US would then become Mexico of the 1970’s with so much massive debt to one nation that we can never get out from underneath it… and we all thought it would be the Japanese who owned the country in the ’80’s, right idea wrong country.)
Then there’s yesterday’s testimony, from Congressional Budget Office (CBO) Director Doug Elmendorf, that ObamaCare’s cost "savings" are an illusion. Mr. Obama claims government can cover more people and pay less to do it. But Mr. Elmendorf told the Senate Finance Committee that "In the legislation that has been reported we don’t see the sort of fundamental changes that would be necessary to reduce the trajectory of federal spending by a significant amount. And on the contrary, the legislation significantly expands the federal responsibility for health-care costs." (How can we get more for less? Outsourced labor, meaning earning wages will have to go down, yet the minimum wage keeps going up over the next 4 years – thanks Nancy. So the only way to get more for less is to have the dollar crash. What is the Democrats end game here? It isn’t health-care, cap and tax, or even socializing the country, think about it. The end game seems to be bringing down the country from the number 1 spot by dismantling the spending and consumption power of the nation. Think I am crazy, look at the cause and effect of the legislation being force through now, why are they doing it? It isn’t to make our lives better or to make the nation stronger, its to entrench a liberal idology perminately and to establish an intellectual elite minority to govern the majority through dependancy and ultimate social controls. All of this can only be done if we are no longer the leading country in the world. We are passing off the largest wealth and prosparity transfer in human history, and it is going to the oldest nation on the planet, China.)
Further on the public plan: "It raises the amount of activity that is growing at this unsustainable rate."
No matter, Speaker Nancy Pelosi is whisking the bill through House committees even before CBO has had a chance to score it in detail. As Wisconsin Republican Paul Ryan put it to us, "We will not have read it, and we will not have a score of it, but we will have passed it out of committee." (This is what I mean by ‘ruling intellectual elite’, the few ruling the masses because the masses are too ignorant and unaware of how to run their own lives, only the ivy league rich Democrats can know what is best for us, we have just sold off our independance to the likes of Obama, Reid, and Pelosi, good job folks. And people wonder why I have spewed such venom and hatred to this group, because I could see their play, too bad more people didn’t.)
A new payroll tax. Unemployment is at 9.5% and rising, but Democrats will nonetheless impose a new eight percentage point payroll tax on employers who don’t provide health insurance for employees. This is on top of the current 15% payroll tax, and in addition to a new 2.5-percentage point tax on individuals who don’t buy health insurance. This means that any employer with more than $400,000 in payroll would have to pay at least 25% above the salary to hire someone. Result: Many fewer new jobs, with a higher structural jobless rate, much as Europe has experienced as its welfare states have expanded. (I guess more then 50% of new businesses will fail in the first year, 3 years, and 5 years now, unless they have no employees…)
Other new taxes, including an as yet undetermined levy on private health plans. This tax, which Democrats say could raise $100 billion or so, would make it even harder for private plans to compete with the government plan, which would already benefit from government subsidies and lower capital costs. For good measure, the House bill also gets the ball rolling on tax increases on foreign-source corporate income. (There goes the ability to have a presence outside the borders, McDonalds, Coke, Yum Foods, Kraft, GE, American Autos, etc. will now have to pay American style taxes on foreign income, being taxed twice because the nations these companies are in WILL require them to pay the nation’s local taxes as well, so you could see a foreign branh of Bank of America pay 80% tax on income from a Denmark branch, BoA will close all those branches limiting competition and placing American businesses overseas at a disadvantage preventing any competition, way to go!)
We could go on, and we will in coming days. But the most remarkable quality of this health-care exercise is its reckless disregard for economic and fiscal reality. With the economy still far from a healthy recovery, and the federal fisc already nearly $2 trillion in deficit, Democrats want to ram through one of the greatest raids on private income and business in American history. The world is looking on, agog, and wondering why the United States seems intent on jumping off this cliff.
The problems with health care in America is not having insurance, it IS insurnace. HMO’s, insurance companies providing insurance to doctors, hospitals, clinics, etc. at insanely high rates because of insanely high jury awards and trial lawyers seeking massive payouts and settlements to avoid trials. The greed of the HMO’s who ration care and seek out profit for their investors instead of provide cost savings for their clients and doctors and modest returns for their investors. The patent laws that make drug companies charge through the nose to pay off all the research and development costs of new drugs in short order before generics strip off their market share. The lack of oversight and protection of hospitals that have resulted in the closure of most non-profit and charitable hospitals and flooded the market with for profit hospitals who have high operating costs due to insurance and payroll because the hospitas and its employees have different insurance policies. The problem is not that 5 million illegal immigrants don’t have health insurance, 9 million Americans who make over $75,000 a year don’t have helath insurance, or 18 million Americans under 35 not having insurance, many of which are part timers or between jobs. No the problem is miss managed HMO’s who can kick out clients for getting care without any penalty. The problem is all the overhead and increases passed on from middle man to middle man to middle man and finally passed onto the customer. The whole industry has gotten too focused on profits and gains, much like the financial sector. The issue needs to be addressed by looking at price restructing and incentives, not by selling off the future of 3 generations of Americans to the Chinese! You can’t spend your way out of this problem, they money flowing in will only cause higher prices because of the increased taxes in the industry will make those in charge charge more to compensate. The president needs to stop calling for an alternative and look at the reasons why the prices are so high. Democrats love to control people and lives so much, why don’t they take the zeal and furvor they did against Wall Street and apply that to our Health Care system? Want to regulate something, regulate healthcare. Throwing money at it is like letting the fox guard the hen house.