Monday, March 22, 2010

Health Care "Reform"

This Bloomberg article talks about all the new taxes proposed under Pelosi-Reid-Obama's supposed Health Care Reform. Let's take a look:
  1. $409.2 billion total in additional taxes by 2019 broken down by:
  • $69 billion in penalties for individuals and businesses who don’t meet mandates to buy insurance. Individuals without insurance will be fined $325 in 2015, $695 in 2016 or 2.5% of income depending on which is greater [i.e. if you make more than $27,800 you'll pay 2.5% of your income in fines]. Employers with 50 or more workers would pay $2,000 per worker if they don’t offer health insurance.
  • 3.8% Medicare tax on about 1 million individuals earning more than $200,000 and about 4 million couples filing jointly who make more than $250,000 [9 million people total].
  • Obama’s budget allows the existing 15 percent tax rate on dividends and capital gains to rise to 20 percent in 2011 for the same high-earners for a total of a 23.8% tax.
  • Increases Medicare tax currently imposed on salaries starting at $200,000 for individuals and $250,000 for couples to 2.35 percent, from current 1.45 percent [62% increase].
  • 40 percent excise tax on "Cadillac" health insurance plans is delayed until 2018, when it will apply to benefits over $10,200 for individuals and $27,500 for couples.
  • Starting in 2013, Americans under 65 won’t be able to deduct medical expenses until they exceed 10 percent of income, up from 7.5 percent.
  • New $2,500 limit on what can be contributed to employer-sponsored flexible spending accounts [currently there is no limit].
  • Consumers who frequent tanning salons would pay a 10% excise tax.
  • Insurers would be denied deductions for executive pay over $500,000.

The entire bill of taxes is a joke. 10% excise tax for frequenting a tanning salon? Who's to say that the Vitamin D produced by one's body isn't worth a 10% tax credit? What does Botox Pelosi have against tanned individuals? Why not charge 10% income taxes on obese people? They're the driving factor for most maladies requiring health care [i.e. diabetes, high blood pressure, coronary artery disease, etc.]. If the President is concerned about the price of health care, why would he depress the wages of Executives that insure most Americans? Most insurance companies run on a 2% profit margin as is. Flex spending accounts allow people to pay for procedures using tax deferred dollars, now one could only afford braces much less any real health procedure. Of course a rallying cry for Democrats is that health care is the leading cause of bankruptcy. How sympathetic is it then to raise the threshold by 33% in order for one to deduct medical expenses from one's income? Why not allow all medical expenses to be deducted from one's income, including the cost of health insurance premiums? The biggest joke of all is the kickback to Unions like SEIU or UAW, delaying their "contribution" to health care reform until 2018 when their Cadillac health plans will be taxed at 40%. The entire bill is a sick, stupid joke.

All said, if Democrats believe that 2008 gave them a mandate to pass health care "reform" then the 2010 political revolution will give Republicans/Conservatives a mandate to repeal said "reform." This business of extracting wealth from the "rich" in order to distribute to the less rich, or "poor" has got to end. People need to re-educate themselves where our Rights come from. Not from Government, who can then take them away, but from our Creator. No one has a right to money, let alone health care, except that which they earn.

1 comment:

JP Ramey said...

I'd just like to add, how can people think ten years of taxes for six years of benefits is a great idea. What happens year 11?