Friday, July 24, 2009

Hidden Health Care Taxes

[Welcome Insurance Forums readers!]

Don't you just love it when politicians tell you there will be no new taxes to fund a new program? It's as if they can make money magically appear out of thin air (and to an extent they do).

But why is it no one is really asking the tough questions. You know, such as "how will WE pay for it?"

A new hidden tax went into effect today. Not related to health care but supposedly designed to stimulate the economy. The hidden tax comes in the form of a $0.75 per hour increase in the minimum wage.

The DOL says the increase will lead to new spending which will help the economy.

Right . . .

What if the employer lay's off workers, or fails to hire new workers, or cut's back on hours worked by minimum wage employees? How does this help the economy?

Or maybe the employer doesn't do any of that but instead raises prices to compensate for the higher wage?

Since most of the folks in Washington have never owned a business, much less held a real job, they would not understand this basic fact.

There are also hidden taxes in health care reform. Things they are not telling you about.

Consider this tidbit from Greg Johnson of the Knoxville News Sentinel.
A key component to the Obama plan is the expansion of Medicaid. Since the federal government funds part of Medicaid and the states pay a portion, any increase would necessarily mean more costs at the state level. “Medicaid is a poor vehicle for expanding coverage,” Bredesen told the Times. “It’s not health care reform to dump more money into Medicaid.”

With a $1 trillion federal price tag, how much might Obama’s health care reform cost at the state level? Sen. Lamar Alexander, R-Tenn., offered an estimate last month. “This bill is so expensive, it will literally bankrupt states,” Alexander said. “Just the expansion of Medicaid in the bill could cost Tennessee $1.2 billion a year by 2015, according to the state Medicaid director.”
$1.2 billion is a lot to ask from 6.2 million residents of Tennessee, and 2015 isn't that far off.
If Obama strong-arms enough of his reckless, feckless colleagues in Congress to pass this bill, how might Tennessee come up with $1.2 billion? “This is about the amount of money,” Alexander said, “a new 10 percent state income tax would raise.”
10% is hefty as well.

Guess the goal would be to earn no income and avoid paying the tax. Of course if you did that you would qualify for Medicaid.

Smaller cars, bigger health insurance, Poppa Washington.
blog comments powered by Disqus